Correlation Between Bridgford Foods and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Kambi Group 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 Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Kambi Group plc, you can compare the effects of market volatilities on Bridgford Foods and Kambi Group 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 Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Kambi Group.
Diversification Opportunities for Bridgford Foods and Kambi Group
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bridgford and Kambi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Kambi Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kambi Group plc 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 Kambi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kambi Group plc has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Kambi Group go up and down completely randomly.
Pair Corralation between Bridgford Foods and Kambi Group
Given the investment horizon of 90 days Bridgford Foods is expected to generate 0.85 times more return on investment than Kambi Group. However, Bridgford Foods is 1.18 times less risky than Kambi Group. It trades about 0.0 of its potential returns per unit of risk. Kambi Group plc is currently generating about -0.03 per unit of risk. If you would invest 1,235 in Bridgford Foods on November 2, 2024 and sell it today you would lose (185.50) from holding Bridgford Foods or give up 15.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bridgford Foods vs. Kambi Group plc
Performance |
| Timeline |
| Bridgford Foods |
| Kambi Group plc |
Bridgford Foods and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Kambi Group
The main advantage of trading using opposite Bridgford Foods and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Kambi Group 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 Kambi Group will offset losses from the drop in Kambi Group'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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