Correlation Between ONEOK and Bridgford Foods
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By analyzing existing cross correlation between ONEOK PARTNERS L and Bridgford Foods, you can compare the effects of market volatilities on ONEOK 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 ONEOK with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Bridgford Foods.
Diversification Opportunities for ONEOK and Bridgford Foods
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between ONEOK and Bridgford is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK PARTNERS L and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and ONEOK 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 ONEOK PARTNERS L 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 ONEOK i.e., ONEOK and Bridgford Foods go up and down completely randomly.
Pair Corralation between ONEOK and Bridgford Foods
Assuming the 90 days trading horizon ONEOK PARTNERS L is expected to under-perform the Bridgford Foods. But the bond apears to be less risky and, when comparing its historical volatility, ONEOK PARTNERS L is 1.16 times less risky than Bridgford Foods. The bond trades about -0.11 of its potential returns per unit of risk. The Bridgford Foods is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 881.00 in Bridgford Foods on September 4, 2024 and sell it today you would earn a total of 52.00 from holding Bridgford Foods or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
ONEOK PARTNERS L vs. Bridgford Foods
Performance |
| Timeline |
| ONEOK PARTNERS L |
| Bridgford Foods |
ONEOK and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Bridgford Foods
The main advantage of trading using opposite ONEOK and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK 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 ONEOK PARTNERS L 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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