Correlation Between Bridgford Foods and Saia
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Saia 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 Bridgford Foods and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Saia Inc, you can compare the effects of market volatilities on Bridgford Foods and Saia 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 Bridgford Foods with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Saia.
Diversification Opportunities for Bridgford Foods and Saia
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bridgford and Saia is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Bridgford Foods 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 Bridgford Foods are associated (or correlated) with Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Saia go up and down completely randomly.
Pair Corralation between Bridgford Foods and Saia
Given the investment horizon of 90 days Bridgford Foods is expected to under-perform the Saia. But the stock apears to be less risky and, when comparing its historical volatility, Bridgford Foods is 1.66 times less risky than Saia. The stock trades about -0.22 of its potential returns per unit of risk. The Saia Inc is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 45,940 in Saia Inc on December 28, 2024 and sell it today you would lose (8,340) from holding Saia Inc or give up 18.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bridgford Foods vs. Saia Inc
Performance |
Timeline |
Bridgford Foods |
Saia Inc |
Bridgford Foods and Saia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bridgford Foods and Saia
The main advantage of trading using opposite Bridgford Foods and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.Bridgford Foods vs. Edible Garden AG | Bridgford Foods vs. Dermata Therapeutics Warrant | Bridgford Foods vs. Iveda Solutions Warrant | Bridgford Foods vs. Aclarion |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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