Correlation Between APACHE and Bridgford Foods
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By analyzing existing cross correlation between APACHE P 51 and Bridgford Foods, you can compare the effects of market volatilities on APACHE 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 APACHE with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of APACHE and Bridgford Foods.
Diversification Opportunities for APACHE and Bridgford Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between APACHE and Bridgford is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding APACHE P 51 and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and APACHE 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 APACHE P 51 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 APACHE i.e., APACHE and Bridgford Foods go up and down completely randomly.
Pair Corralation between APACHE and Bridgford Foods
Assuming the 90 days trading horizon APACHE P 51 is expected to generate 0.35 times more return on investment than Bridgford Foods. However, APACHE P 51 is 2.84 times less risky than Bridgford Foods. It trades about 0.01 of its potential returns per unit of risk. Bridgford Foods is currently generating about 0.0 per unit of risk. If you would invest 8,127 in APACHE P 51 on September 5, 2024 and sell it today you would earn a total of 45.00 from holding APACHE P 51 or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APACHE P 51 vs. Bridgford Foods
Performance |
| Timeline |
| APACHE P 51 |
| Bridgford Foods |
APACHE and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APACHE and Bridgford Foods
The main advantage of trading using opposite APACHE and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APACHE 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.| APACHE vs. Nomura Holdings ADR | APACHE vs. Summit Hotel Properties | APACHE vs. Shake Shack | APACHE vs. Stepstone Group |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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