Correlation Between Seneca Foods and Nates Food
Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Nates Food 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 Nates Food 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 Nates Food Co, you can compare the effects of market volatilities on Seneca Foods and Nates Food 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 Nates Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Nates Food.
Diversification Opportunities for Seneca Foods and Nates Food
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seneca and Nates is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Nates Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nates Food 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 Nates Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nates Food has no effect on the direction of Seneca Foods i.e., Seneca Foods and Nates Food go up and down completely randomly.
Pair Corralation between Seneca Foods and Nates Food
If you would invest 7,340 in Seneca Foods Corp on November 27, 2024 and sell it today you would earn a total of 682.00 from holding Seneca Foods Corp or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seneca Foods Corp vs. Nates Food Co
Performance |
| Timeline |
| Seneca Foods Corp |
| Nates Food |
Seneca Foods and Nates Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seneca Foods and Nates Food
The main advantage of trading using opposite Seneca Foods and Nates Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, Nates Food 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 Nates Food will offset losses from the drop in Nates Food'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 |
| Nates Food vs. The Planting Hope | Nates Food vs. Else Nutrition Holdings | Nates Food vs. Steakholder Foods | Nates Food vs. Laird Superfood |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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