Correlation Between SENECA FOODS and SCANDION ONC
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS and SCANDION ONC 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 SCANDION ONC 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 SCANDION ONC DK 0735, you can compare the effects of market volatilities on SENECA FOODS and SCANDION ONC 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 SCANDION ONC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS and SCANDION ONC.
Diversification Opportunities for SENECA FOODS and SCANDION ONC
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SENECA and SCANDION is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and SCANDION ONC DK 0735 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDION ONC DK 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 SCANDION ONC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDION ONC DK has no effect on the direction of SENECA FOODS i.e., SENECA FOODS and SCANDION ONC go up and down completely randomly.
Pair Corralation between SENECA FOODS and SCANDION ONC
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 0.48 times more return on investment than SCANDION ONC. However, SENECA FOODS A is 2.08 times less risky than SCANDION ONC. It trades about 0.29 of its potential returns per unit of risk. SCANDION ONC DK 0735 is currently generating about -0.42 per unit of risk. If you would invest 5,550 in SENECA FOODS A on August 29, 2024 and sell it today you would earn a total of 1,050 from holding SENECA FOODS A or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SENECA FOODS A vs. SCANDION ONC DK 0735
Performance |
| Timeline |
| SENECA FOODS A |
| SCANDION ONC DK |
SENECA FOODS and SCANDION ONC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS and SCANDION ONC
The main advantage of trading using opposite SENECA FOODS and SCANDION ONC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS position performs unexpectedly, SCANDION ONC 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 SCANDION ONC will offset losses from the drop in SCANDION ONC's long position.| SENECA FOODS vs. REGAL ASIAN INVESTMENTS | SENECA FOODS vs. Chuangs China Investments | SENECA FOODS vs. Methode Electronics | SENECA FOODS vs. LPKF Laser Electronics |
| SCANDION ONC vs. Mercedes Benz Group AG | SCANDION ONC vs. Superior Plus Corp | SCANDION ONC vs. NMI Holdings | SCANDION ONC vs. SIVERS SEMICONDUCTORS AB |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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