Correlation Between INPOST SA and SENECA FOODS
Can any of the company-specific risk be diversified away by investing in both INPOST SA 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 INPOST SA and SENECA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INPOST SA EO and SENECA FOODS A, you can compare the effects of market volatilities on INPOST SA 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 INPOST SA with a short position of SENECA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and SENECA FOODS.
Diversification Opportunities for INPOST SA and SENECA FOODS
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INPOST and SENECA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO 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 INPOST SA 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 INPOST SA EO 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 INPOST SA i.e., INPOST SA and SENECA FOODS go up and down completely randomly.
Pair Corralation between INPOST SA and SENECA FOODS
Assuming the 90 days horizon INPOST SA EO is expected to under-perform the SENECA FOODS. In addition to that, INPOST SA is 1.11 times more volatile than SENECA FOODS A. It trades about -0.12 of its total potential returns per unit of risk. SENECA FOODS A is currently generating about 0.4 per unit of volatility. If you would invest 5,800 in SENECA FOODS A on September 12, 2024 and sell it today you would earn a total of 950.00 from holding SENECA FOODS A or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
INPOST SA EO vs. SENECA FOODS A
Performance |
| Timeline |
| INPOST SA EO |
| SENECA FOODS A |
INPOST SA and SENECA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPOST SA and SENECA FOODS
The main advantage of trading using opposite INPOST SA and SENECA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA 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.| INPOST SA vs. SENECA FOODS A | INPOST SA vs. SALESFORCE INC CDR | INPOST SA vs. Astral Foods Limited | INPOST SA vs. Fast Retailing Co |
| SENECA FOODS vs. Xenia Hotels Resorts | SENECA FOODS vs. COSTCO WHOLESALE CDR | SENECA FOODS vs. Hyatt Hotels | SENECA FOODS vs. Ross Stores |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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