Correlation Between Bridgford Foods and J J
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and J J 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 J J into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and J J Snack, you can compare the effects of market volatilities on Bridgford Foods and J J 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 J J. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and J J.
Diversification Opportunities for Bridgford Foods and J J
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bridgford and JJSF is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and J J Snack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J J Snack 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 J J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J J Snack has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and J J go up and down completely randomly.
Pair Corralation between Bridgford Foods and J J
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the J J. In addition to that, Bridgford Foods is 1.63 times more volatile than J J Snack. It trades about -0.01 of its total potential returns per unit of risk. J J Snack is currently generating about 0.02 per unit of volatility. If you would invest 15,236 in J J Snack on August 27, 2024 and sell it today you would earn a total of 1,880 from holding J J Snack or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bridgford Foods vs. J J Snack
Performance |
| Timeline |
| Bridgford Foods |
| J J Snack |
Bridgford Foods and J J Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and J J
The main advantage of trading using opposite Bridgford Foods and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, J J 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 J J will offset losses from the drop in J J'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 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |