Correlation Between Bridgford Foods and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Eastman Kodak 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 Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Eastman Kodak Co, you can compare the effects of market volatilities on Bridgford Foods and Eastman Kodak 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 Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Eastman Kodak.
Diversification Opportunities for Bridgford Foods and Eastman Kodak
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bridgford and Eastman is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak 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 Eastman Kodak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastman Kodak has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Eastman Kodak go up and down completely randomly.
Pair Corralation between Bridgford Foods and Eastman Kodak
Given the investment horizon of 90 days Bridgford Foods is expected to generate 1.62 times less return on investment than Eastman Kodak. But when comparing it to its historical volatility, Bridgford Foods is 3.11 times less risky than Eastman Kodak. It trades about 0.32 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Eastman Kodak Co on September 13, 2024 and sell it today you would earn a total of 128.00 from holding Eastman Kodak Co or generate 23.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgford Foods vs. Eastman Kodak Co
Performance |
| Timeline |
| Bridgford Foods |
| Eastman Kodak |
Bridgford Foods and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Eastman Kodak
The main advantage of trading using opposite Bridgford Foods and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Eastman Kodak 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 Eastman Kodak will offset losses from the drop in Eastman Kodak'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 |
| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |