Correlation Between Bridgford Foods and Galaxy Entertainment
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Galaxy Entertainment 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 Galaxy Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Galaxy Entertainment Group, you can compare the effects of market volatilities on Bridgford Foods and Galaxy Entertainment 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 Galaxy Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Galaxy Entertainment.
Diversification Opportunities for Bridgford Foods and Galaxy Entertainment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bridgford and Galaxy is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Galaxy Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Entertainment 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 Galaxy Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Entertainment has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Galaxy Entertainment go up and down completely randomly.
Pair Corralation between Bridgford Foods and Galaxy Entertainment
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Galaxy Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Bridgford Foods is 3.56 times less risky than Galaxy Entertainment. The stock trades about -0.09 of its potential returns per unit of risk. The Galaxy Entertainment Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 423.00 in Galaxy Entertainment Group on November 3, 2024 and sell it today you would earn a total of 61.00 from holding Galaxy Entertainment Group or generate 14.42% 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. Galaxy Entertainment Group
Performance |
| Timeline |
| Bridgford Foods |
| Galaxy Entertainment |
Bridgford Foods and Galaxy Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Galaxy Entertainment
The main advantage of trading using opposite Bridgford Foods and Galaxy Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Galaxy Entertainment 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 Galaxy Entertainment will offset losses from the drop in Galaxy Entertainment'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 |
| Galaxy Entertainment vs. American Airlines Group | Galaxy Entertainment vs. Playtech plc | Galaxy Entertainment vs. Hasbro Inc | Galaxy Entertainment vs. SkyWest |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |