Correlation Between Bridgford Foods and Bayport International
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Bayport International 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 Bayport International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Bayport International Holdings, you can compare the effects of market volatilities on Bridgford Foods and Bayport International 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 Bayport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Bayport International.
Diversification Opportunities for Bridgford Foods and Bayport International
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgford and Bayport is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Bayport International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayport International 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 Bayport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayport International has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Bayport International go up and down completely randomly.
Pair Corralation between Bridgford Foods and Bayport International
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Bayport International. But the stock apears to be less risky and, when comparing its historical volatility, Bridgford Foods is 31.15 times less risky than Bayport International. The stock trades about 0.0 of its potential returns per unit of risk. The Bayport International Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.80 in Bayport International Holdings on November 2, 2024 and sell it today you would lose (0.79) from holding Bayport International Holdings or give up 98.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bridgford Foods vs. Bayport International Holdings
Performance |
| Timeline |
| Bridgford Foods |
| Bayport International |
Bridgford Foods and Bayport International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Bayport International
The main advantage of trading using opposite Bridgford Foods and Bayport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Bayport International 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 Bayport International will offset losses from the drop in Bayport International'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 |
| Bayport International vs. Hong Kong Land | Bayport International vs. Wharf Holdings | Bayport International vs. Holiday Island Holdings | Bayport International vs. Sun Hung Kai |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world |