Correlation Between Copperbank Resources and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Copperbank Resources and Bridgford Foods 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 Copperbank Resources and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copperbank Resources Corp and Bridgford Foods, you can compare the effects of market volatilities on Copperbank Resources and Bridgford Foods 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 Copperbank Resources with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copperbank Resources and Bridgford Foods.
Diversification Opportunities for Copperbank Resources and Bridgford Foods
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Copperbank and Bridgford is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Copperbank Resources Corp and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Copperbank Resources 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 Copperbank Resources Corp are associated (or correlated) with Bridgford Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgford Foods has no effect on the direction of Copperbank Resources i.e., Copperbank Resources and Bridgford Foods go up and down completely randomly.
Pair Corralation between Copperbank Resources and Bridgford Foods
Assuming the 90 days horizon Copperbank Resources Corp is expected to generate 1.67 times more return on investment than Bridgford Foods. However, Copperbank Resources is 1.67 times more volatile than Bridgford Foods. It trades about 0.01 of its potential returns per unit of risk. Bridgford Foods is currently generating about -0.02 per unit of risk. If you would invest 53.00 in Copperbank Resources Corp on October 27, 2024 and sell it today you would earn a total of 0.00 from holding Copperbank Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copperbank Resources Corp vs. Bridgford Foods
Performance |
| Timeline |
| Copperbank Resources Corp |
| Bridgford Foods |
Copperbank Resources and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copperbank Resources and Bridgford Foods
The main advantage of trading using opposite Copperbank Resources and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copperbank Resources position performs unexpectedly, Bridgford Foods 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 Bridgford Foods will offset losses from the drop in Bridgford Foods' long position.| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Arizona Sonoran Copper | Copperbank Resources vs. CopperCorp Resources | Copperbank Resources vs. Copper Fox Metals |
| Bridgford Foods vs. J J Snack | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Lancaster Colony |
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 Stocks Directory module to find actively traded stocks across global markets.
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