Correlation Between Seneca Foods and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Campbell Soup 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 Campbell Soup 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 Campbell Soup, you can compare the effects of market volatilities on Seneca Foods and Campbell Soup 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 Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Campbell Soup.
Diversification Opportunities for Seneca Foods and Campbell Soup
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seneca and Campbell is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup 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 Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of Seneca Foods i.e., Seneca Foods and Campbell Soup go up and down completely randomly.
Pair Corralation between Seneca Foods and Campbell Soup
Assuming the 90 days horizon Seneca Foods Corp is expected to generate 103.73 times more return on investment than Campbell Soup. However, Seneca Foods is 103.73 times more volatile than Campbell Soup. It trades about 0.13 of its potential returns per unit of risk. Campbell Soup is currently generating about 0.01 per unit of risk. If you would invest 3,750 in Seneca Foods Corp on August 26, 2024 and sell it today you would earn a total of 3,376 from holding Seneca Foods Corp or generate 90.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.25% |
| Values | Daily Returns |
Seneca Foods Corp vs. Campbell Soup
Performance |
| Timeline |
| Seneca Foods Corp |
| Campbell Soup |
Seneca Foods and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seneca Foods and Campbell Soup
The main advantage of trading using opposite Seneca Foods and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, Campbell Soup 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 Campbell Soup will offset losses from the drop in Campbell Soup's long position.| Seneca Foods vs. Bridgford Foods | Seneca Foods vs. J J Snack | Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Central Garden Pet |
| Campbell Soup vs. Bellring Brands LLC | Campbell Soup vs. Ingredion Incorporated | Campbell Soup vs. Nomad Foods | Campbell Soup vs. Post Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |