Correlation Between Bridgford Foods and CEZ A
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and CEZ A 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 CEZ A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and CEZ A S, you can compare the effects of market volatilities on Bridgford Foods and CEZ A 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 CEZ A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and CEZ A.
Diversification Opportunities for Bridgford Foods and CEZ A
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgford and CEZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and CEZ A S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ A S 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 CEZ A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ A S has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and CEZ A go up and down completely randomly.
Pair Corralation between Bridgford Foods and CEZ A
Given the investment horizon of 90 days Bridgford Foods is expected to generate 2.16 times more return on investment than CEZ A. However, Bridgford Foods is 2.16 times more volatile than CEZ A S. It trades about -0.01 of its potential returns per unit of risk. CEZ A S is currently generating about -0.02 per unit of risk. If you would invest 1,284 in Bridgford Foods on October 25, 2024 and sell it today you would lose (258.00) from holding Bridgford Foods or give up 20.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 71.63% |
| Values | Daily Returns |
Bridgford Foods vs. CEZ A S
Performance |
| Timeline |
| Bridgford Foods |
| CEZ A S |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bridgford Foods and CEZ A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and CEZ A
The main advantage of trading using opposite Bridgford Foods and CEZ A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, CEZ A 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 CEZ A will offset losses from the drop in CEZ A'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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