Correlation Between Bridgford Foods and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and ATIF 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 ATIF 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 ATIF Holdings Limited, you can compare the effects of market volatilities on Bridgford Foods and ATIF 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 ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and ATIF Holdings.
Diversification Opportunities for Bridgford Foods and ATIF Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bridgford and ATIF is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and ATIF Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings Limited 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 ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings Limited has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and ATIF Holdings go up and down completely randomly.
Pair Corralation between Bridgford Foods and ATIF Holdings
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the ATIF Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Bridgford Foods is 10.22 times less risky than ATIF Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The ATIF Holdings Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 88.00 in ATIF Holdings Limited on October 26, 2024 and sell it today you would earn a total of 40.00 from holding ATIF Holdings Limited or generate 45.45% 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. ATIF Holdings Limited
Performance |
| Timeline |
| Bridgford Foods |
| ATIF Holdings Limited |
Bridgford Foods and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and ATIF Holdings
The main advantage of trading using opposite Bridgford Foods and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, ATIF 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' 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 |
| ATIF Holdings vs. Bridgford Foods | ATIF Holdings vs. Ingredion Incorporated | ATIF Holdings vs. WK Kellogg Co | ATIF Holdings vs. Cementos Pacasmayo SAA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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