Correlation Between Park Hotels and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Park Hotels 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 Park Hotels and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park Hotels Resorts and Bridgford Foods, you can compare the effects of market volatilities on Park Hotels 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 Park Hotels with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Hotels and Bridgford Foods.
Diversification Opportunities for Park Hotels and Bridgford Foods
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and Bridgford is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Park Hotels Resorts and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Park Hotels 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 Park Hotels Resorts 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 Park Hotels i.e., Park Hotels and Bridgford Foods go up and down completely randomly.
Pair Corralation between Park Hotels and Bridgford Foods
Allowing for the 90-day total investment horizon Park Hotels Resorts is expected to under-perform the Bridgford Foods. In addition to that, Park Hotels is 1.17 times more volatile than Bridgford Foods. It trades about -0.33 of its total potential returns per unit of risk. Bridgford Foods is currently generating about 0.07 per unit of volatility. If you would invest 1,030 in Bridgford Foods on December 6, 2024 and sell it today you would earn a total of 14.99 from holding Bridgford Foods or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Hotels Resorts vs. Bridgford Foods
Performance |
| Timeline |
| Park Hotels Resorts |
| Bridgford Foods |
Park Hotels and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Hotels and Bridgford Foods
The main advantage of trading using opposite Park Hotels and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Hotels 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.| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Pebblebrook Hotel Trust | Park Hotels vs. Sunstone Hotel Investors |
| 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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