Correlation Between Inter Parfums and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Inter Parfums 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 Inter Parfums and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and Seneca Foods Corp, you can compare the effects of market volatilities on Inter Parfums 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 Inter Parfums with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Seneca Foods.
Diversification Opportunities for Inter Parfums and Seneca Foods
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inter and Seneca is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums 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 Inter Parfums 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 Inter Parfums 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 Inter Parfums i.e., Inter Parfums and Seneca Foods go up and down completely randomly.
Pair Corralation between Inter Parfums and Seneca Foods
Given the investment horizon of 90 days Inter Parfums is expected to generate 218.46 times less return on investment than Seneca Foods. But when comparing it to its historical volatility, Inter Parfums is 86.69 times less risky than Seneca Foods. It trades about 0.07 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 5,880 in Seneca Foods Corp on September 3, 2024 and sell it today you would earn a total of 1,324 from holding Seneca Foods Corp or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 48.0% |
| Values | Daily Returns |
Inter Parfums vs. Seneca Foods Corp
Performance |
| Timeline |
| Inter Parfums |
| Seneca Foods Corp |
Inter Parfums and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and Seneca Foods
The main advantage of trading using opposite Inter Parfums and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums 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.| Inter Parfums vs. Highway Holdings Limited | Inter Parfums vs. QCR Holdings | Inter Parfums vs. Partner Communications | Inter Parfums vs. Acumen Pharmaceuticals |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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