Correlation Between TOWNSQUARE MEDIA and SENECA FOODS
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA and SENECA 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 TOWNSQUARE MEDIA and SENECA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOWNSQUARE MEDIA INC and SENECA FOODS A, you can compare the effects of market volatilities on TOWNSQUARE MEDIA and SENECA 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 TOWNSQUARE MEDIA with a short position of SENECA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and SENECA FOODS.
Diversification Opportunities for TOWNSQUARE MEDIA and SENECA FOODS
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TOWNSQUARE and SENECA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC 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 TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA INC are associated (or correlated) with SENECA FOODS. 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 TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and SENECA FOODS go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and SENECA FOODS
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to generate 0.85 times more return on investment than SENECA FOODS. However, TOWNSQUARE MEDIA INC is 1.17 times less risky than SENECA FOODS. It trades about 0.05 of its potential returns per unit of risk. SENECA FOODS A is currently generating about 0.02 per unit of risk. If you would invest 590.00 in TOWNSQUARE MEDIA INC on August 29, 2024 and sell it today you would earn a total of 345.00 from holding TOWNSQUARE MEDIA INC or generate 58.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. SENECA FOODS A
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| SENECA FOODS A |
TOWNSQUARE MEDIA and SENECA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and SENECA FOODS
The main advantage of trading using opposite TOWNSQUARE MEDIA and SENECA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA position performs unexpectedly, SENECA 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 SENECA FOODS will offset losses from the drop in SENECA FOODS's long position.| TOWNSQUARE MEDIA vs. Calibre Mining Corp | TOWNSQUARE MEDIA vs. COLUMBIA SPORTSWEAR | TOWNSQUARE MEDIA vs. LG Display Co | TOWNSQUARE MEDIA vs. PLAYTIKA HOLDING DL 01 |
| SENECA FOODS vs. REGAL ASIAN INVESTMENTS | SENECA FOODS vs. Chuangs China Investments | SENECA FOODS vs. Methode Electronics | SENECA FOODS vs. LPKF Laser Electronics |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |