Correlation Between Kellanova and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Kellanova 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 Kellanova and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Bridgford Foods, you can compare the effects of market volatilities on Kellanova 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 Kellanova with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Bridgford Foods.
Diversification Opportunities for Kellanova and Bridgford Foods
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kellanova and Bridgford is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Kellanova 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 Kellanova 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 Kellanova i.e., Kellanova and Bridgford Foods go up and down completely randomly.
Pair Corralation between Kellanova and Bridgford Foods
Taking into account the 90-day investment horizon Kellanova is expected to generate 8.23 times less return on investment than Bridgford Foods. But when comparing it to its historical volatility, Kellanova is 7.69 times less risky than Bridgford Foods. It trades about 0.07 of its potential returns per unit of risk. Bridgford Foods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 899.00 in Bridgford Foods on August 26, 2024 and sell it today you would earn a total of 24.00 from holding Bridgford Foods or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. Bridgford Foods
Performance |
| Timeline |
| Kellanova |
| Bridgford Foods |
Kellanova and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Bridgford Foods
The main advantage of trading using opposite Kellanova and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova 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.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
| Bridgford Foods vs. Bellring Brands LLC | Bridgford Foods vs. Ingredion Incorporated | Bridgford Foods vs. Nomad Foods | Bridgford Foods vs. Post Holdings |
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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