Correlation Between Bridgford Foods and Amplitude
Can any of the company-specific risk be diversified away by investing in both Bridgford Foods and Amplitude 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 Amplitude into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgford Foods and Amplitude, you can compare the effects of market volatilities on Bridgford Foods and Amplitude 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 Amplitude. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgford Foods and Amplitude.
Diversification Opportunities for Bridgford Foods and Amplitude
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bridgford and Amplitude is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bridgford Foods and Amplitude in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitude 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 Amplitude. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitude has no effect on the direction of Bridgford Foods i.e., Bridgford Foods and Amplitude go up and down completely randomly.
Pair Corralation between Bridgford Foods and Amplitude
Given the investment horizon of 90 days Bridgford Foods is expected to generate 0.98 times more return on investment than Amplitude. However, Bridgford Foods is 1.03 times less risky than Amplitude. It trades about 0.0 of its potential returns per unit of risk. Amplitude is currently generating about -0.01 per unit of risk. If you would invest 791.00 in Bridgford Foods on September 5, 2025 and sell it today you would lose (10.50) from holding Bridgford Foods or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgford Foods vs. Amplitude
Performance |
| Timeline |
| Bridgford Foods |
| Amplitude |
Bridgford Foods and Amplitude Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgford Foods and Amplitude
The main advantage of trading using opposite Bridgford Foods and Amplitude positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgford Foods position performs unexpectedly, Amplitude 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 Amplitude will offset losses from the drop in Amplitude's long position.| Bridgford Foods vs. RTG Mining | Bridgford Foods vs. United Industrial | Bridgford Foods vs. US GoldMining Common | Bridgford Foods vs. Eagle Mountain Mining |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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