Correlation Between Element Solutions and SENECA FOODS
Can any of the company-specific risk be diversified away by investing in both Element Solutions 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 Element Solutions and SENECA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Element Solutions and SENECA FOODS A, you can compare the effects of market volatilities on Element Solutions 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 Element Solutions with a short position of SENECA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Element Solutions and SENECA FOODS.
Diversification Opportunities for Element Solutions and SENECA FOODS
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Element and SENECA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Element Solutions 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 Element Solutions 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 Element Solutions 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 A has no effect on the direction of Element Solutions i.e., Element Solutions and SENECA FOODS go up and down completely randomly.
Pair Corralation between Element Solutions and SENECA FOODS
Assuming the 90 days horizon Element Solutions is expected to generate 0.65 times more return on investment than SENECA FOODS. However, Element Solutions is 1.55 times less risky than SENECA FOODS. It trades about 0.07 of its potential returns per unit of risk. SENECA FOODS A is currently generating about -0.2 per unit of risk. If you would invest 2,440 in Element Solutions on October 28, 2024 and sell it today you would earn a total of 40.00 from holding Element Solutions or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Element Solutions vs. SENECA FOODS A
Performance |
| Timeline |
| Element Solutions |
| SENECA FOODS A |
Element Solutions and SENECA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Element Solutions and SENECA FOODS
The main advantage of trading using opposite Element Solutions and SENECA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Solutions 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's long position.| Element Solutions vs. UPDATE SOFTWARE | Element Solutions vs. PLAYWAY SA ZY 10 | Element Solutions vs. Unity Software | Element Solutions vs. Scandinavian Tobacco Group |
| SENECA FOODS vs. GURU ORGANIC ENERGY | SENECA FOODS vs. AIR PRODCHEMICALS | SENECA FOODS vs. SAN MIGUEL BREWERY | SENECA FOODS vs. GWILLI FOOD |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |