Correlation Between Seneca Foods and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Beyond Meat 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 Beyond Meat 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 Beyond Meat, you can compare the effects of market volatilities on Seneca Foods and Beyond Meat 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 Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Beyond Meat.
Diversification Opportunities for Seneca Foods and Beyond Meat
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seneca and Beyond is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat 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 Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of Seneca Foods i.e., Seneca Foods and Beyond Meat go up and down completely randomly.
Pair Corralation between Seneca Foods and Beyond Meat
Assuming the 90 days horizon Seneca Foods Corp is expected to generate 0.53 times more return on investment than Beyond Meat. However, Seneca Foods Corp is 1.88 times less risky than Beyond Meat. It trades about 0.27 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.22 per unit of risk. If you would invest 6,320 in Seneca Foods Corp on August 28, 2024 and sell it today you would earn a total of 868.00 from holding Seneca Foods Corp or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seneca Foods Corp vs. Beyond Meat
Performance |
| Timeline |
| Seneca Foods Corp |
| Beyond Meat |
Seneca Foods and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seneca Foods and Beyond Meat
The main advantage of trading using opposite Seneca Foods and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat'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 |
| Beyond Meat vs. Bellring Brands LLC | Beyond Meat vs. Ingredion Incorporated | Beyond Meat vs. Nomad Foods | Beyond Meat 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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