Correlation Between Bridgford Foods and Cooper Tire
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Cooper Tire 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 Cooper Tire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Cooper Tire Rubber, you can compare the effects of market volatilities on Bridgford Foods and Cooper Tire 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 Cooper Tire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Cooper Tire.
Diversification Opportunities for Bridgford Foods and Cooper Tire
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgford and Cooper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Cooper Tire Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Tire Rubber 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 Cooper Tire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Tire Rubber has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Cooper Tire go up and down completely randomly.
Pair Corralation between Bridgford Foods and Cooper Tire
If you would invest 1,089 in Bridgford Foods on December 4, 2024 and sell it today you would lose (38.00) from holding Bridgford Foods or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bridgford Foods vs. Cooper Tire Rubber
Performance |
| Timeline |
| Bridgford Foods |
| Cooper Tire Rubber |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bridgford Foods and Cooper Tire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Cooper Tire
The main advantage of trading using opposite Bridgford Foods and Cooper Tire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Cooper Tire 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 Cooper Tire will offset losses from the drop in Cooper Tire'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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