Correlation Between Bridgford Foods and Tuxis
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Tuxis 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 Tuxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Tuxis, you can compare the effects of market volatilities on Bridgford Foods and Tuxis 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 Tuxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Tuxis.
Diversification Opportunities for Bridgford Foods and Tuxis
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bridgford and Tuxis is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Tuxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuxis 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 Tuxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuxis has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Tuxis go up and down completely randomly.
Pair Corralation between Bridgford Foods and Tuxis
If you would invest 994.00 in Bridgford Foods on September 5, 2024 and sell it today you would lose (50.00) from holding Bridgford Foods or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.82% |
| Values | Daily Returns |
Bridgford Foods vs. Tuxis
Performance |
| Timeline |
| Bridgford Foods |
| Tuxis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bridgford Foods and Tuxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Tuxis
The main advantage of trading using opposite Bridgford Foods and Tuxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Tuxis 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 Tuxis will offset losses from the drop in Tuxis' long position.| Bridgford Foods vs. Seneca Foods Corp | Bridgford Foods vs. J J Snack | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet |
| Tuxis vs. Bridgford Foods | Tuxis vs. United Fire Group | Tuxis vs. Kinsale Capital Group | Tuxis vs. Old Republic International |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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