Correlation Between SENECA FOODS-A and La Française
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and La Française 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-A and La Française into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SENECA FOODS A and La Franaise des, you can compare the effects of market volatilities on SENECA FOODS-A and La Française 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-A with a short position of La Française. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and La Française.
Diversification Opportunities for SENECA FOODS-A and La Française
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SENECA and 1WE is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and La Franaise des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Franaise des and SENECA FOODS-A 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 A are associated (or correlated) with La Française. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Franaise des has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and La Française go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and La Française
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 1.14 times more return on investment than La Française. However, SENECA FOODS-A is 1.14 times more volatile than La Franaise des. It trades about 0.2 of its potential returns per unit of risk. La Franaise des is currently generating about 0.09 per unit of risk. If you would invest 5,400 in SENECA FOODS A on September 3, 2024 and sell it today you would earn a total of 1,050 from holding SENECA FOODS A or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. La Franaise des
Performance |
| Timeline |
| SENECA FOODS A |
| La Franaise des |
SENECA FOODS-A and La Française Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and La Française
The main advantage of trading using opposite SENECA FOODS-A and La Française positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, La Française 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 La Française will offset losses from the drop in La Française's long position.| SENECA FOODS-A vs. TOTAL GABON | SENECA FOODS-A vs. Walgreens Boots Alliance | SENECA FOODS-A vs. Peak Resources Limited |
| La Française vs. Bausch Health Companies | La Française vs. SENECA FOODS A | La Française vs. Ramsay Health Care | La Française vs. NXP Semiconductors NV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |