Correlation Between MOVIE GAMES and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and SENECA FOODS-A 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 MOVIE GAMES and SENECA FOODS-A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and SENECA FOODS A, you can compare the effects of market volatilities on MOVIE GAMES and SENECA FOODS-A 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 MOVIE GAMES with a short position of SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and SENECA FOODS-A.
Diversification Opportunities for MOVIE GAMES and SENECA FOODS-A
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOVIE and SENECA is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with SENECA FOODS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between MOVIE GAMES and SENECA FOODS-A
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 2.49 times more return on investment than SENECA FOODS-A. However, MOVIE GAMES is 2.49 times more volatile than SENECA FOODS A. It trades about 0.25 of its potential returns per unit of risk. SENECA FOODS A is currently generating about 0.09 per unit of risk. If you would invest 319.00 in MOVIE GAMES SA on October 13, 2024 and sell it today you would earn a total of 91.00 from holding MOVIE GAMES SA or generate 28.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. SENECA FOODS A
Performance |
| Timeline |
| MOVIE GAMES SA |
| SENECA FOODS A |
MOVIE GAMES and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and SENECA FOODS-A
The main advantage of trading using opposite MOVIE GAMES and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, SENECA FOODS-A 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 SENECA FOODS-A will offset losses from the drop in SENECA FOODS-A's long position.| MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc |
| SENECA FOODS-A vs. ELECTRONIC ARTS | SENECA FOODS-A vs. Renesas Electronics | SENECA FOODS-A vs. CARSALESCOM | SENECA FOODS-A vs. MOVIE GAMES SA |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |