Correlation Between Seneca Foods and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both Seneca Foods and AgriFORCE Growing 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 Seneca Foods and AgriFORCE Growing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seneca Foods Corp and AgriFORCE Growing Systems, you can compare the effects of market volatilities on Seneca Foods and AgriFORCE Growing 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 Seneca Foods with a short position of AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and AgriFORCE Growing.
Diversification Opportunities for Seneca Foods and AgriFORCE Growing
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seneca and AgriFORCE is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and AgriFORCE Growing Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriFORCE Growing Systems and Seneca Foods 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 Seneca Foods Corp are associated (or correlated) with AgriFORCE Growing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriFORCE Growing Systems has no effect on the direction of Seneca Foods i.e., Seneca Foods and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between Seneca Foods and AgriFORCE Growing
Assuming the 90 days horizon Seneca Foods Corp is expected to generate 0.3 times more return on investment than AgriFORCE Growing. However, Seneca Foods Corp is 3.32 times less risky than AgriFORCE Growing. It trades about 0.16 of its potential returns per unit of risk. AgriFORCE Growing Systems is currently generating about -0.12 per unit of risk. If you would invest 6,027 in Seneca Foods Corp on August 30, 2024 and sell it today you would earn a total of 1,073 from holding Seneca Foods Corp or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seneca Foods Corp vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| Seneca Foods Corp |
| AgriFORCE Growing Systems |
Seneca Foods and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seneca Foods and AgriFORCE Growing
The main advantage of trading using opposite Seneca Foods and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, AgriFORCE Growing 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 AgriFORCE Growing will offset losses from the drop in AgriFORCE Growing's long position.| Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Natures Sunshine Products | Seneca Foods vs. Associated British Foods |
| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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