Correlation Between Citizens Holding and Bridgford Foods

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

By analyzing existing cross correlation between Citizens Holding and Bridgford Foods, you can compare the effects of market volatilities on Citizens Holding 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 Citizens Holding with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and Bridgford Foods.

Diversification Opportunities for Citizens Holding and Bridgford Foods

0.0

Correlation Coefficient

Citizens Holding  Bridgford Foods

Pay attention - limited upside

The 3 months correlation between Citizens and Bridgford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Citizens Holding 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 Citizens Holding 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 Citizens Holding i.e., Citizens Holding and Bridgford Foods go up and down completely randomly.

Pair Corralation between Citizens Holding and Bridgford Foods

If you would invest  907.00  in Bridgford Foods on November 29, 2024 and sell it today you would earn a total of  142.00  from holding Bridgford Foods or generate 15.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citizens Holding  vs.  Bridgford Foods

Citizens Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citizens Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Citizens Holding is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Bridgford Foods

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgford Foods are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak forward indicators, Bridgford Foods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citizens Holding and Bridgford Foods

The main advantage of trading using opposite Citizens Holding and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding 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 Citizens Holding 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.