Correlation Between Bridgford Foods and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Cedar Realty 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 Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Cedar Realty Trust, you can compare the effects of market volatilities on Bridgford Foods and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Cedar Realty.
Diversification Opportunities for Bridgford Foods and Cedar Realty
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridgford and Cedar is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Cedar Realty go up and down completely randomly.
Pair Corralation between Bridgford Foods and Cedar Realty
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Cedar Realty. But the stock apears to be less risky and, when comparing its historical volatility, Bridgford Foods is 1.12 times less risky than Cedar Realty. The stock trades about -0.01 of its potential returns per unit of risk. The Cedar Realty Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,135 in Cedar Realty Trust on August 24, 2024 and sell it today you would earn a total of 446.00 from holding Cedar Realty Trust or generate 39.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bridgford Foods vs. Cedar Realty Trust
Performance |
| Timeline |
| Bridgford Foods |
| Cedar Realty Trust |
Bridgford Foods and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Cedar Realty
The main advantage of trading using opposite Bridgford Foods and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty'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 |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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