Correlation Between Calbee and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Calbee 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 Calbee and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calbee Inc and Seneca Foods Corp, you can compare the effects of market volatilities on Calbee 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 Calbee with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calbee and Seneca Foods.
Diversification Opportunities for Calbee and Seneca Foods
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calbee and Seneca is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Calbee Inc 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 Calbee 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 Calbee 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 Corp has no effect on the direction of Calbee i.e., Calbee and Seneca Foods go up and down completely randomly.
Pair Corralation between Calbee and Seneca Foods
Assuming the 90 days horizon Calbee Inc is expected to under-perform the Seneca Foods. In addition to that, Calbee is 1.34 times more volatile than Seneca Foods Corp. It trades about -0.23 of its total potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.32 per unit of volatility. If you would invest 6,342 in Seneca Foods Corp on August 29, 2024 and sell it today you would earn a total of 1,028 from holding Seneca Foods Corp or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
Calbee Inc vs. Seneca Foods Corp
Performance |
| Timeline |
| Calbee Inc |
| Seneca Foods Corp |
Calbee and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calbee and Seneca Foods
The main advantage of trading using opposite Calbee and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calbee 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.| Calbee vs. Toyo Suisan Kaisha | Calbee vs. Treehouse Foods | Calbee vs. John B Sanfilippo | Calbee vs. Campbell Soup |
| Seneca Foods vs. Bridgford Foods | Seneca Foods vs. J J Snack | Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Central Garden Pet |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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