Correlation Between Bridgford Foods and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Getty 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 Getty 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 Getty Realty, you can compare the effects of market volatilities on Bridgford Foods and Getty 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 Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Getty Realty.
Diversification Opportunities for Bridgford Foods and Getty Realty
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridgford and Getty is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty 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 Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Getty Realty go up and down completely randomly.
Pair Corralation between Bridgford Foods and Getty Realty
Given the investment horizon of 90 days Bridgford Foods is expected to generate 1.21 times less return on investment than Getty Realty. In addition to that, Bridgford Foods is 1.61 times more volatile than Getty Realty. It trades about 0.08 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.16 per unit of volatility. If you would invest 3,145 in Getty Realty on September 3, 2024 and sell it today you would earn a total of 122.00 from holding Getty Realty or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgford Foods vs. Getty Realty
Performance |
| Timeline |
| Bridgford Foods |
| Getty Realty |
Bridgford Foods and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Getty Realty
The main advantage of trading using opposite Bridgford Foods and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Getty 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 Getty Realty will offset losses from the drop in Getty Realty'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 |
| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |