Correlation Between Bridgford Foods and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Sligro Food 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 Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Sligro Food Group, you can compare the effects of market volatilities on Bridgford Foods and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Sligro Food.
Diversification Opportunities for Bridgford Foods and Sligro Food
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridgford and Sligro is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Sligro Food go up and down completely randomly.
Pair Corralation between Bridgford Foods and Sligro Food
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Sligro Food. In addition to that, Bridgford Foods is 2.36 times more volatile than Sligro Food Group. It trades about -0.05 of its total potential returns per unit of risk. Sligro Food Group is currently generating about -0.06 per unit of volatility. If you would invest 1,303 in Sligro Food Group on November 2, 2024 and sell it today you would lose (103.00) from holding Sligro Food Group or give up 7.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.26% |
| Values | Daily Returns |
Bridgford Foods vs. Sligro Food Group
Performance |
| Timeline |
| Bridgford Foods |
| Sligro Food Group |
Bridgford Foods and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Sligro Food
The main advantage of trading using opposite Bridgford Foods and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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