Correlation Between SEI Investments and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both SEI Investments 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 SEI Investments and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Bridgford Foods, you can compare the effects of market volatilities on SEI Investments 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 SEI Investments with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Bridgford Foods.
Diversification Opportunities for SEI Investments and Bridgford Foods
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SEI and Bridgford is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and SEI Investments 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 SEI Investments 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 SEI Investments i.e., SEI Investments and Bridgford Foods go up and down completely randomly.
Pair Corralation between SEI Investments and Bridgford Foods
Given the investment horizon of 90 days SEI Investments is expected to generate 0.37 times more return on investment than Bridgford Foods. However, SEI Investments is 2.73 times less risky than Bridgford Foods. It trades about 0.1 of its potential returns per unit of risk. Bridgford Foods is currently generating about -0.01 per unit of risk. If you would invest 6,585 in SEI Investments on August 29, 2024 and sell it today you would earn a total of 1,659 from holding SEI Investments or generate 25.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.56% |
| Values | Daily Returns |
SEI Investments vs. Bridgford Foods
Performance |
| Timeline |
| SEI Investments |
| Bridgford Foods |
SEI Investments and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Bridgford Foods
The main advantage of trading using opposite SEI Investments and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments 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.| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
| Bridgford Foods vs. Seneca Foods Corp | 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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