Correlation Between Bridgford Foods and CoreCivic

Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and CoreCivic 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 CoreCivic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bridgford Foods and CoreCivic 475 percent, you can compare the effects of market volatilities on Bridgford Foods and CoreCivic 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 CoreCivic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and CoreCivic.

Diversification Opportunities for Bridgford Foods and CoreCivic

-0.01

Correlation Coefficient

Bridgford Foods  CoreCivic

Good diversification

The 3 months correlation between Bridgford and CoreCivic is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and CoreCivic 475 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCivic 475 percent 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 CoreCivic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCivic 475 percent has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and CoreCivic go up and down completely randomly.

Pair Corralation between Bridgford Foods and CoreCivic

Given the investment horizon of 90 days Bridgford Foods is expected to generate 3.7 times more return on investment than CoreCivic. However, Bridgford Foods is 3.7 times more volatile than CoreCivic 475 percent. It trades about 0.06 of its potential returns per unit of risk. CoreCivic 475 percent is currently generating about -0.01 per unit of risk. If you would invest  978.00  in Bridgford Foods on December 4, 2024 and sell it today you would earn a total of  56.00  from holding Bridgford Foods or generate 5.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Bridgford Foods  vs.  CoreCivic 475 percent

Bridgford Foods

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgford Foods are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak forward indicators, Bridgford Foods may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CoreCivic 475 percent

Risk-Adjusted Performance

Very Weak

Over the last 90 days CoreCivic 475 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CoreCivic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bridgford Foods and CoreCivic

The main advantage of trading using opposite Bridgford Foods and CoreCivic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, CoreCivic 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 CoreCivic will offset losses from the drop in CoreCivic's long position.

The idea behind Bridgford Foods and CoreCivic 475 percent 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.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.