Correlation Between Grand Havana and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Grand Havana 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 Grand Havana and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Havana and Seneca Foods Corp, you can compare the effects of market volatilities on Grand Havana 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 Grand Havana with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Havana and Seneca Foods.
Diversification Opportunities for Grand Havana and Seneca Foods
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Seneca is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Grand Havana 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 Grand Havana 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 Grand Havana 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 Grand Havana i.e., Grand Havana and Seneca Foods go up and down completely randomly.
Pair Corralation between Grand Havana and Seneca Foods
Given the investment horizon of 90 days Grand Havana is expected to under-perform the Seneca Foods. In addition to that, Grand Havana is 4.41 times more volatile than Seneca Foods Corp. It trades about -0.01 of its total potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.28 per unit of volatility. If you would invest 6,197 in Seneca Foods Corp on August 31, 2024 and sell it today you would earn a total of 903.00 from holding Seneca Foods Corp or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Havana vs. Seneca Foods Corp
Performance |
| Timeline |
| Grand Havana |
| Seneca Foods Corp |
Grand Havana and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Havana and Seneca Foods
The main advantage of trading using opposite Grand Havana and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Havana 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.| Grand Havana vs. Right On Brands | Grand Havana vs. BioAdaptives | Grand Havana vs. Yuenglings Ice Cream | Grand Havana vs. Bit Origin |
| Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Natures Sunshine Products | Seneca Foods vs. Associated British Foods |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |