Correlation Between Boiron SA and SENECA FOODS
Can any of the company-specific risk be diversified away by investing in both Boiron 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 Boiron 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 Boiron SA and SENECA FOODS A, you can compare the effects of market volatilities on Boiron 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 Boiron SA with a short position of SENECA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and SENECA FOODS.
Diversification Opportunities for Boiron SA and SENECA FOODS
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boiron and SENECA is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Boiron 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 Boiron 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 Boiron SA 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 Boiron SA i.e., Boiron SA and SENECA FOODS go up and down completely randomly.
Pair Corralation between Boiron SA and SENECA FOODS
Assuming the 90 days horizon Boiron SA is expected to under-perform the SENECA FOODS. In addition to that, Boiron SA is 1.23 times more volatile than SENECA FOODS A. It trades about -0.16 of its total potential returns per unit of risk. SENECA FOODS A is currently generating about 0.22 per unit of volatility. If you would invest 6,400 in SENECA FOODS A on September 21, 2024 and sell it today you would earn a total of 700.00 from holding SENECA FOODS A or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boiron SA vs. SENECA FOODS A
Performance |
| Timeline |
| Boiron SA |
| SENECA FOODS A |
Boiron SA and SENECA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and SENECA FOODS
The main advantage of trading using opposite Boiron SA and SENECA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron 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.| Boiron SA vs. Superior Plus Corp | Boiron SA vs. SIVERS SEMICONDUCTORS AB | Boiron SA vs. NorAm Drilling AS | Boiron SA vs. Norsk Hydro ASA |
| SENECA FOODS vs. EIDESVIK OFFSHORE NK | SENECA FOODS vs. Sanyo Chemical Industries | SENECA FOODS vs. Sekisui Chemical Co | SENECA FOODS vs. CSSC Offshore Marine |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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