Correlation Between TROPHY GAMES and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both TROPHY 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 TROPHY 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 TROPHY GAMES DEV and SENECA FOODS A, you can compare the effects of market volatilities on TROPHY 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 TROPHY GAMES with a short position of SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and SENECA FOODS-A.
Diversification Opportunities for TROPHY GAMES and SENECA FOODS-A
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TROPHY and SENECA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV 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 TROPHY 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 TROPHY GAMES DEV 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 TROPHY GAMES i.e., TROPHY GAMES and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between TROPHY GAMES and SENECA FOODS-A
Assuming the 90 days horizon TROPHY GAMES DEV is expected to under-perform the SENECA FOODS-A. But the stock apears to be less risky and, when comparing its historical volatility, TROPHY GAMES DEV is 1.19 times less risky than SENECA FOODS-A. The stock trades about -0.13 of its potential returns per unit of risk. The SENECA FOODS A is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 5,550 in SENECA FOODS A on August 26, 2024 and sell it today you would earn a total of 1,100 from holding SENECA FOODS A or generate 19.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. SENECA FOODS A
Performance |
| Timeline |
| TROPHY GAMES DEV |
| SENECA FOODS A |
TROPHY GAMES and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and SENECA FOODS-A
The main advantage of trading using opposite TROPHY GAMES and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY 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.| TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Bilibili |
| SENECA FOODS-A vs. Apple Inc | SENECA FOODS-A vs. Apple Inc | SENECA FOODS-A vs. Apple Inc | SENECA FOODS-A vs. Apple Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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