Correlation Between Campbell Soup and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Campbell Soup 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 Campbell Soup and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and Seneca Foods Corp, you can compare the effects of market volatilities on Campbell Soup 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 Campbell Soup with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and Seneca Foods.
Diversification Opportunities for Campbell Soup and Seneca Foods
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Campbell and Seneca is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup 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 Campbell Soup 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 Campbell Soup 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 Campbell Soup i.e., Campbell Soup and Seneca Foods go up and down completely randomly.
Pair Corralation between Campbell Soup and Seneca Foods
Considering the 90-day investment horizon Campbell Soup is expected to generate 17.14 times less return on investment than Seneca Foods. But when comparing it to its historical volatility, Campbell Soup is 1.56 times less risky than Seneca Foods. It trades about 0.01 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,698 in Seneca Foods Corp on August 26, 2024 and sell it today you would earn a total of 3,600 from holding Seneca Foods Corp or generate 97.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campbell Soup vs. Seneca Foods Corp
Performance |
| Timeline |
| Campbell Soup |
| Seneca Foods Corp |
Campbell Soup and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and Seneca Foods
The main advantage of trading using opposite Campbell Soup and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup 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.| Campbell Soup vs. Bellring Brands LLC | Campbell Soup vs. Ingredion Incorporated | Campbell Soup vs. Nomad Foods | Campbell Soup vs. Post Holdings |
| Seneca Foods vs. Bellring Brands LLC | Seneca Foods vs. Ingredion Incorporated | Seneca Foods vs. Nomad Foods | Seneca Foods vs. Post Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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