Correlation Between Bridgford Foods and Nomura Holdings
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Nomura Holdings 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 Nomura Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Nomura Holdings ADR, you can compare the effects of market volatilities on Bridgford Foods and Nomura Holdings 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 Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Nomura Holdings.
Diversification Opportunities for Bridgford Foods and Nomura Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bridgford and Nomura is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Nomura Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Holdings ADR 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 Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings ADR has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Nomura Holdings go up and down completely randomly.
Pair Corralation between Bridgford Foods and Nomura Holdings
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Nomura Holdings. In addition to that, Bridgford Foods is 1.33 times more volatile than Nomura Holdings ADR. It trades about -0.01 of its total potential returns per unit of risk. Nomura Holdings ADR is currently generating about 0.08 per unit of volatility. If you would invest 410.00 in Nomura Holdings ADR on August 25, 2024 and sell it today you would earn a total of 195.00 from holding Nomura Holdings ADR or generate 47.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Bridgford Foods vs. Nomura Holdings ADR
Performance |
| Timeline |
| Bridgford Foods |
| Nomura Holdings ADR |
Bridgford Foods and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Nomura Holdings
The main advantage of trading using opposite Bridgford Foods and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Nomura Holdings 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 Nomura Holdings will offset losses from the drop in Nomura Holdings' long position.| Bridgford Foods vs. Bellring Brands LLC | Bridgford Foods vs. Ingredion Incorporated | Bridgford Foods vs. John B Sanfilippo | Bridgford Foods vs. Nomad Foods |
| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |