Correlation Between Global Fashion and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both Global Fashion and SENECA FOODS-A 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 Global Fashion and SENECA FOODS-A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Fashion Group and SENECA FOODS A, you can compare the effects of market volatilities on Global Fashion and SENECA FOODS-A 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 Global Fashion with a short position of SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Fashion and SENECA FOODS-A.
Diversification Opportunities for Global Fashion and SENECA FOODS-A
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and SENECA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Fashion Group 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 Global Fashion 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 Global Fashion Group are associated (or correlated) with SENECA FOODS-A. 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 Global Fashion i.e., Global Fashion and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between Global Fashion and SENECA FOODS-A
If you would invest 5,550 in SENECA FOODS A on September 5, 2024 and sell it today you would earn a total of 1,200 from holding SENECA FOODS A or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global Fashion Group vs. SENECA FOODS A
Performance |
| Timeline |
| Global Fashion Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SENECA FOODS A |
Global Fashion and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Fashion and SENECA FOODS-A
The main advantage of trading using opposite Global Fashion and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Fashion position performs unexpectedly, SENECA FOODS-A 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-A will offset losses from the drop in SENECA FOODS-A's long position.| Global Fashion vs. BURLINGTON STORES | Global Fashion vs. FLOW TRADERS LTD | Global Fashion vs. Vastned Retail NV | Global Fashion vs. Fast Retailing Co |
| SENECA FOODS-A vs. TOTAL GABON | SENECA FOODS-A vs. Walgreens Boots Alliance | SENECA FOODS-A vs. Peak Resources Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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