Correlation Between Bridgford Foods and Powered Brands
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Powered Brands 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 Powered Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Powered Brands, you can compare the effects of market volatilities on Bridgford Foods and Powered Brands 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 Powered Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Powered Brands.
Diversification Opportunities for Bridgford Foods and Powered Brands
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridgford and Powered is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Powered Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powered Brands 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 Powered Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powered Brands has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Powered Brands go up and down completely randomly.
Pair Corralation between Bridgford Foods and Powered Brands
If you would invest 896.00 in Bridgford Foods on October 11, 2024 and sell it today you would earn a total of 168.00 from holding Bridgford Foods or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bridgford Foods vs. Powered Brands
Performance |
| Timeline |
| Bridgford Foods |
| Powered Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bridgford Foods and Powered Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Powered Brands
The main advantage of trading using opposite Bridgford Foods and Powered Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Powered Brands 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 Powered Brands will offset losses from the drop in Powered Brands' 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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