Correlation Between Ainsworth Game and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Bridgford Foods at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ainsworth Game and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and Bridgford Foods, you can compare the effects of market volatilities on Ainsworth Game and Bridgford Foods and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ainsworth Game with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Bridgford Foods.
Diversification Opportunities for Ainsworth Game and Bridgford Foods
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ainsworth and Bridgford is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Ainsworth Game is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ainsworth Game Technology are associated (or correlated) with Bridgford Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgford Foods has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Bridgford Foods go up and down completely randomly.
Pair Corralation between Ainsworth Game and Bridgford Foods
Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 1.29 times more return on investment than Bridgford Foods. However, Ainsworth Game is 1.29 times more volatile than Bridgford Foods. It trades about -0.01 of its potential returns per unit of risk. Bridgford Foods is currently generating about -0.07 per unit of risk. If you would invest 58.00 in Ainsworth Game Technology on November 28, 2024 and sell it today you would lose (7.00) from holding Ainsworth Game Technology or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Bridgford Foods
Performance |
| Timeline |
| Ainsworth Game Technology |
| Bridgford Foods |
Ainsworth Game and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Bridgford Foods
The main advantage of trading using opposite Ainsworth Game and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Bridgford Foods can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bridgford Foods will offset losses from the drop in Bridgford Foods' long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Bridgford Foods vs. J J Snack | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Lancaster Colony |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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