Correlation Between Bridgford Foods and Adecoagro
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Adecoagro 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 Bridgford Foods and Adecoagro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Adecoagro SA, you can compare the effects of market volatilities on Bridgford Foods and Adecoagro 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 Bridgford Foods with a short position of Adecoagro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Adecoagro.
Diversification Opportunities for Bridgford Foods and Adecoagro
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgford and Adecoagro is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Adecoagro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecoagro SA and Bridgford Foods 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 Bridgford Foods are associated (or correlated) with Adecoagro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecoagro SA has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Adecoagro go up and down completely randomly.
Pair Corralation between Bridgford Foods and Adecoagro
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Adecoagro. In addition to that, Bridgford Foods is 1.68 times more volatile than Adecoagro SA. It trades about -0.09 of its total potential returns per unit of risk. Adecoagro SA is currently generating about 0.08 per unit of volatility. If you would invest 957.00 in Adecoagro SA on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Adecoagro SA or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgford Foods vs. Adecoagro SA
Performance |
| Timeline |
| Bridgford Foods |
| Adecoagro SA |
Bridgford Foods and Adecoagro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Adecoagro
The main advantage of trading using opposite Bridgford Foods and Adecoagro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Adecoagro 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 Adecoagro will offset losses from the drop in Adecoagro's long position.| Bridgford Foods vs. J J Snack | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Lancaster Colony |
| Adecoagro vs. Limoneira Co | Adecoagro vs. Dole PLC | Adecoagro vs. Alico Inc | Adecoagro vs. Cal Maine Foods |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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