Correlation Between ACAFP and Bridgford Foods
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By analyzing existing cross correlation between ACAFP 2811 11 JAN 41 and Bridgford Foods, you can compare the effects of market volatilities on ACAFP 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 ACAFP with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACAFP and Bridgford Foods.
Diversification Opportunities for ACAFP and Bridgford Foods
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACAFP and Bridgford is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ACAFP 2811 11 JAN 41 and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and ACAFP 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 ACAFP 2811 11 JAN 41 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 ACAFP i.e., ACAFP and Bridgford Foods go up and down completely randomly.
Pair Corralation between ACAFP and Bridgford Foods
Assuming the 90 days trading horizon ACAFP 2811 11 JAN 41 is expected to under-perform the Bridgford Foods. But the bond apears to be less risky and, when comparing its historical volatility, ACAFP 2811 11 JAN 41 is 1.12 times less risky than Bridgford Foods. The bond trades about -0.01 of its potential returns per unit of risk. The Bridgford Foods is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Bridgford Foods on September 2, 2024 and sell it today you would lose (93.00) from holding Bridgford Foods or give up 9.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 43.9% |
| Values | Daily Returns |
ACAFP 2811 11 JAN 41 vs. Bridgford Foods
Performance |
| Timeline |
| ACAFP 2811 11 |
| Bridgford Foods |
ACAFP and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACAFP and Bridgford Foods
The main advantage of trading using opposite ACAFP and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACAFP 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.The idea behind ACAFP 2811 11 JAN 41 and Bridgford Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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