Correlation Between Yuexiu Transport and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Bridgford Foods, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Bridgford Foods.
Diversification Opportunities for Yuexiu Transport and Bridgford Foods
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Bridgford is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Bridgford Foods go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Bridgford Foods
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.17 times more return on investment than Bridgford Foods. However, Yuexiu Transport is 1.17 times more volatile than Bridgford Foods. It trades about 0.09 of its potential returns per unit of risk. Bridgford Foods is currently generating about -0.02 per unit of risk. If you would invest 19.00 in Yuexiu Transport Infrastructure on August 31, 2024 and sell it today you would earn a total of 39.00 from holding Yuexiu Transport Infrastructure or generate 205.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Bridgford Foods
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Bridgford Foods |
Yuexiu Transport and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Bridgford Foods
The main advantage of trading using opposite Yuexiu Transport and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. SCOR PK | Yuexiu Transport vs. Aquagold International |
| Bridgford Foods vs. Seneca Foods Corp | Bridgford Foods vs. J J Snack | Bridgford Foods vs. Central Garden Pet | Bridgford Foods vs. Central Garden Pet |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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