Correlation Between Scepter Holdings and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Scepter Holdings 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 Scepter Holdings and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scepter Holdings and Seneca Foods Corp, you can compare the effects of market volatilities on Scepter Holdings 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 Scepter Holdings with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scepter Holdings and Seneca Foods.
Diversification Opportunities for Scepter Holdings and Seneca Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scepter and Seneca is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Scepter Holdings and Seneca Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seneca Foods Corp and Scepter Holdings 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 Scepter Holdings 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 Corp has no effect on the direction of Scepter Holdings i.e., Scepter Holdings and Seneca Foods go up and down completely randomly.
Pair Corralation between Scepter Holdings and Seneca Foods
Given the investment horizon of 90 days Scepter Holdings is expected to under-perform the Seneca Foods. In addition to that, Scepter Holdings is 11.62 times more volatile than Seneca Foods Corp. It trades about 0.0 of its total potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.25 per unit of volatility. If you would invest 6,320 in Seneca Foods Corp on August 29, 2024 and sell it today you would earn a total of 856.00 from holding Seneca Foods Corp or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Scepter Holdings vs. Seneca Foods Corp
Performance |
| Timeline |
| Scepter Holdings |
| Seneca Foods Corp |
Scepter Holdings and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scepter Holdings and Seneca Foods
The main advantage of trading using opposite Scepter Holdings and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scepter Holdings 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' long position.| Scepter Holdings vs. Qed Connect | Scepter Holdings vs. Nates Food Co | Scepter Holdings vs. Sharing Services Global | Scepter Holdings vs. Stryve Foods |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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