Correlation Between Bridgford Foods and Hitachi Metals
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Hitachi Metals 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 Hitachi Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Hitachi Metals, you can compare the effects of market volatilities on Bridgford Foods and Hitachi Metals 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 Hitachi Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Hitachi Metals.
Diversification Opportunities for Bridgford Foods and Hitachi Metals
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bridgford and Hitachi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Hitachi Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitachi Metals 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 Hitachi Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitachi Metals has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Hitachi Metals go up and down completely randomly.
Pair Corralation between Bridgford Foods and Hitachi Metals
If you would invest 1,146 in Bridgford Foods on September 12, 2024 and sell it today you would lose (106.00) from holding Bridgford Foods or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.31% |
| Values | Daily Returns |
Bridgford Foods vs. Hitachi Metals
Performance |
| Timeline |
| Bridgford Foods |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bridgford Foods and Hitachi Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Hitachi Metals
The main advantage of trading using opposite Bridgford Foods and Hitachi Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Hitachi Metals 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 Hitachi Metals will offset losses from the drop in Hitachi Metals' 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 |
| Hitachi Metals vs. SunLink Health Systems | Hitachi Metals vs. The Gap, | Hitachi Metals vs. BBB Foods | Hitachi Metals vs. Bridgford Foods |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |