Correlation Between MamaMancinis Holdings and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both MamaMancinis Holdings 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 MamaMancinis Holdings and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MamaMancinis Holdings and Seneca Foods Corp, you can compare the effects of market volatilities on MamaMancinis Holdings 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 MamaMancinis Holdings with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MamaMancinis Holdings and Seneca Foods.
Diversification Opportunities for MamaMancinis Holdings and Seneca Foods
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MamaMancinis and Seneca is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MamaMancinis Holdings 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 MamaMancinis Holdings 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 MamaMancinis Holdings 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 MamaMancinis Holdings i.e., MamaMancinis Holdings and Seneca Foods go up and down completely randomly.
Pair Corralation between MamaMancinis Holdings and Seneca Foods
Given the investment horizon of 90 days MamaMancinis Holdings is expected to generate 1.63 times more return on investment than Seneca Foods. However, MamaMancinis Holdings is 1.63 times more volatile than Seneca Foods Corp. It trades about 0.19 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.11 per unit of risk. If you would invest 338.00 in MamaMancinis Holdings on August 28, 2024 and sell it today you would earn a total of 31.00 from holding MamaMancinis Holdings or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.24% |
| Values | Daily Returns |
MamaMancinis Holdings vs. Seneca Foods Corp
Performance |
| Timeline |
| MamaMancinis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Seneca Foods Corp |
MamaMancinis Holdings and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MamaMancinis Holdings and Seneca Foods
The main advantage of trading using opposite MamaMancinis Holdings and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MamaMancinis Holdings 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.| MamaMancinis Holdings vs. Seneca Foods Corp | MamaMancinis Holdings vs. Central Garden Pet | MamaMancinis Holdings vs. Central Garden Pet | MamaMancinis Holdings vs. Natures Sunshine Products |
| Seneca Foods vs. Bellring Brands LLC | Seneca Foods vs. Ingredion Incorporated | Seneca Foods vs. Nomad Foods | Seneca Foods vs. Simply Good 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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