Correlation Between Lepanto Consolidated and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Lepanto Consolidated 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 Lepanto Consolidated and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lepanto Consolidated Mining and Bridgford Foods, you can compare the effects of market volatilities on Lepanto Consolidated 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 Lepanto Consolidated with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepanto Consolidated and Bridgford Foods.
Diversification Opportunities for Lepanto Consolidated and Bridgford Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lepanto and Bridgford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lepanto Consolidated Mining and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Lepanto Consolidated 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 Lepanto Consolidated Mining 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 Lepanto Consolidated i.e., Lepanto Consolidated and Bridgford Foods go up and down completely randomly.
Pair Corralation between Lepanto Consolidated and Bridgford Foods
Assuming the 90 days horizon Lepanto Consolidated Mining is expected to generate 21.67 times more return on investment than Bridgford Foods. However, Lepanto Consolidated is 21.67 times more volatile than Bridgford Foods. It trades about 0.05 of its potential returns per unit of risk. Bridgford Foods is currently generating about -0.01 per unit of risk. If you would invest 0.20 in Lepanto Consolidated Mining on November 28, 2024 and sell it today you would lose (0.20) from holding Lepanto Consolidated Mining or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Lepanto Consolidated Mining vs. Bridgford Foods
Performance |
| Timeline |
| Lepanto Consolidated |
| Bridgford Foods |
Lepanto Consolidated and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lepanto Consolidated and Bridgford Foods
The main advantage of trading using opposite Lepanto Consolidated and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepanto Consolidated 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.| Lepanto Consolidated vs. Agnico Eagle Mines | Lepanto Consolidated vs. B2Gold Corp | Lepanto Consolidated vs. Pan American Silver | Lepanto Consolidated vs. Gold Fields Ltd |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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