Correlation Between SENECA FOODS and Superior Plus
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on SENECA FOODS and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS and Superior Plus.
Diversification Opportunities for SENECA FOODS and Superior Plus
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SENECA and Superior is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 A are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of SENECA FOODS i.e., SENECA FOODS and Superior Plus go up and down completely randomly.
Pair Corralation between SENECA FOODS and Superior Plus
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 0.73 times more return on investment than Superior Plus. However, SENECA FOODS A is 1.37 times less risky than Superior Plus. It trades about 0.35 of its potential returns per unit of risk. Superior Plus Corp is currently generating about 0.1 per unit of risk. If you would invest 6,000 in SENECA FOODS A on September 13, 2024 and sell it today you would earn a total of 800.00 from holding SENECA FOODS A or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SENECA FOODS A vs. Superior Plus Corp
Performance |
| Timeline |
| SENECA FOODS A |
| Superior Plus Corp |
SENECA FOODS and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS and Superior Plus
The main advantage of trading using opposite SENECA FOODS and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc |
| Superior Plus vs. Boiron SA | Superior Plus vs. COSMOSTEEL HLDGS | Superior Plus vs. Vastned Retail NV | Superior Plus vs. BURLINGTON STORES |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |