Correlation Between 26442CAN4 and Bridgford Foods

Can any of the company-specific risk be diversified away by investing in both 26442CAN4 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 26442CAN4 and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY CAROLINAS and Bridgford Foods, you can compare the effects of market volatilities on 26442CAN4 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 26442CAN4 with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442CAN4 and Bridgford Foods.

Diversification Opportunities for 26442CAN4 and Bridgford Foods

0.0

Correlation Coefficient

26442CAN4  Bridgford Foods

Pay attention - limited upside

The 3 months correlation between 26442CAN4 and Bridgford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY CAROLINAS and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and 26442CAN4 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 DUKE ENERGY CAROLINAS 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 26442CAN4 i.e., 26442CAN4 and Bridgford Foods go up and down completely randomly.

Pair Corralation between 26442CAN4 and Bridgford Foods

If you would invest (100.00) in DUKE ENERGY CAROLINAS on December 26, 2024 and sell it today you would earn a total of  100.00  from holding DUKE ENERGY CAROLINAS or generate -100.0% return on investment over 90 days.

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

DUKE ENERGY CAROLINAS  vs.  Bridgford Foods

DUKE ENERGY CAROLINAS

Risk-Adjusted Performance

Insignificant

Over the last 90 days DUKE ENERGY CAROLINAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 26442CAN4 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bridgford Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bridgford Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with 26442CAN4 and Bridgford Foods

The main advantage of trading using opposite 26442CAN4 and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442CAN4 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 DUKE ENERGY CAROLINAS 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.