Correlation Between Bridgford Foods and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and SEI Investments 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 SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and SEI Investments, you can compare the effects of market volatilities on Bridgford Foods and SEI Investments 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 SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and SEI Investments.
Diversification Opportunities for Bridgford Foods and SEI Investments
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridgford and SEI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments 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 SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and SEI Investments go up and down completely randomly.
Pair Corralation between Bridgford Foods and SEI Investments
Given the investment horizon of 90 days Bridgford Foods is expected to generate 2.94 times less return on investment than SEI Investments. In addition to that, Bridgford Foods is 1.46 times more volatile than SEI Investments. It trades about 0.07 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.29 per unit of volatility. If you would invest 7,581 in SEI Investments on August 29, 2024 and sell it today you would earn a total of 656.00 from holding SEI Investments or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgford Foods vs. SEI Investments
Performance |
| Timeline |
| Bridgford Foods |
| SEI Investments |
Bridgford Foods and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and SEI Investments
The main advantage of trading using opposite Bridgford Foods and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, SEI Investments 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 SEI Investments will offset losses from the drop in SEI Investments' long position.| Bridgford Foods vs. Seneca Foods Corp | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Lancaster Colony |
| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |