Correlation Between Dole PLC and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Dole PLC 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 Dole PLC and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dole PLC and Seneca Foods Corp, you can compare the effects of market volatilities on Dole PLC 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 Dole PLC with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dole PLC and Seneca Foods.
Diversification Opportunities for Dole PLC and Seneca Foods
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dole and Seneca is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dole PLC 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 Dole PLC 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 Dole PLC 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 Dole PLC i.e., Dole PLC and Seneca Foods go up and down completely randomly.
Pair Corralation between Dole PLC and Seneca Foods
Given the investment horizon of 90 days Dole PLC is expected to generate 0.74 times more return on investment than Seneca Foods. However, Dole PLC is 1.35 times less risky than Seneca Foods. It trades about -0.11 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about -0.55 per unit of risk. If you would invest 1,370 in Dole PLC on October 21, 2024 and sell it today you would lose (47.00) from holding Dole PLC or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
Dole PLC vs. Seneca Foods Corp
Performance |
| Timeline |
| Dole PLC |
| Seneca Foods Corp |
Dole PLC and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dole PLC and Seneca Foods
The main advantage of trading using opposite Dole PLC and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dole PLC 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.| Dole PLC vs. Limoneira Co | Dole PLC vs. Alico Inc | Dole PLC vs. Adecoagro SA | Dole PLC vs. Cal Maine Foods |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |