Correlation Between Bridgford Foods and Graf Global
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Graf Global 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 Graf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Graf Global Corp, you can compare the effects of market volatilities on Bridgford Foods and Graf Global 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 Graf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Graf Global.
Diversification Opportunities for Bridgford Foods and Graf Global
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridgford and Graf is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Graf Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Global Corp 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 Graf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Global Corp has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Graf Global go up and down completely randomly.
Pair Corralation between Bridgford Foods and Graf Global
Given the investment horizon of 90 days Bridgford Foods is expected to generate 13.84 times more return on investment than Graf Global. However, Bridgford Foods is 13.84 times more volatile than Graf Global Corp. It trades about 0.12 of its potential returns per unit of risk. Graf Global Corp is currently generating about -0.03 per unit of risk. If you would invest 886.00 in Bridgford Foods on August 30, 2024 and sell it today you would earn a total of 40.00 from holding Bridgford Foods or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bridgford Foods vs. Graf Global Corp
Performance |
| Timeline |
| Bridgford Foods |
| Graf Global Corp |
Bridgford Foods and Graf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Graf Global
The main advantage of trading using opposite Bridgford Foods and Graf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Graf Global 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 Graf Global will offset losses from the drop in Graf Global's long position.| Bridgford Foods vs. Seneca Foods Corp | Bridgford Foods vs. J J Snack | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet |
| Graf Global vs. Marfrig Global Foods | Graf Global vs. Bridgford Foods | Graf Global vs. Verra Mobility Corp | Graf Global vs. Hooker Furniture |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |