Correlation Between BG Foods and 893574AB9

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Can any of the company-specific risk be diversified away by investing in both BG Foods and 893574AB9 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 BG Foods and 893574AB9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Foods and TRANSCONTINENTAL GAS PIPE, you can compare the effects of market volatilities on BG Foods and 893574AB9 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 BG Foods with a short position of 893574AB9. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Foods and 893574AB9.

Diversification Opportunities for BG Foods and 893574AB9

0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between BGS and 893574AB9 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding BG Foods and TRANSCONTINENTAL GAS PIPE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCONTINENTAL GAS PIPE and BG 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 BG Foods are associated (or correlated) with 893574AB9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCONTINENTAL GAS PIPE has no effect on the direction of BG Foods i.e., BG Foods and 893574AB9 go up and down completely randomly.

Pair Corralation between BG Foods and 893574AB9

Considering the 90-day investment horizon BG Foods is expected to generate 2.53 times more return on investment than 893574AB9. However, BG Foods is 2.53 times more volatile than TRANSCONTINENTAL GAS PIPE. It trades about 0.04 of its potential returns per unit of risk. TRANSCONTINENTAL GAS PIPE is currently generating about -0.07 per unit of risk. If you would invest  422.00  in BG Foods on August 20, 2025 and sell it today you would earn a total of  27.00  from holding BG Foods or generate 6.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy41.27%
ValuesDaily Returns

BG Foods  vs.  TRANSCONTINENTAL GAS PIPE

 Performance 
       Timeline  
BG Foods 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BG Foods are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, BG Foods may actually be approaching a critical reversion point that can send shares even higher in December 2025.
TRANSCONTINENTAL GAS PIPE 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days TRANSCONTINENTAL GAS PIPE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for TRANSCONTINENTAL GAS PIPE investors.

BG Foods and 893574AB9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BG Foods and 893574AB9

The main advantage of trading using opposite BG Foods and 893574AB9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Foods position performs unexpectedly, 893574AB9 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 893574AB9 will offset losses from the drop in 893574AB9's long position.
The idea behind BG Foods and TRANSCONTINENTAL GAS PIPE 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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