Correlation Between SENECA FOODS-A and COPLAND ROAD
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and COPLAND ROAD 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 COPLAND ROAD 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 COPLAND ROAD CAPITAL, you can compare the effects of market volatilities on SENECA FOODS-A and COPLAND ROAD 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 COPLAND ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and COPLAND ROAD.
Diversification Opportunities for SENECA FOODS-A and COPLAND ROAD
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SENECA and COPLAND is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and COPLAND ROAD CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPLAND ROAD CAPITAL 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 COPLAND ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPLAND ROAD CAPITAL has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and COPLAND ROAD go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and COPLAND ROAD
Assuming the 90 days trading horizon SENECA FOODS-A is expected to generate 23.06 times less return on investment than COPLAND ROAD. But when comparing it to its historical volatility, SENECA FOODS A is 15.03 times less risky than COPLAND ROAD. It trades about 0.03 of its potential returns per unit of risk. COPLAND ROAD CAPITAL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15.00 in COPLAND ROAD CAPITAL on October 15, 2024 and sell it today you would earn a total of 4,825 from holding COPLAND ROAD CAPITAL or generate 32166.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. COPLAND ROAD CAPITAL
Performance |
| Timeline |
| SENECA FOODS A |
| COPLAND ROAD CAPITAL |
SENECA FOODS-A and COPLAND ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and COPLAND ROAD
The main advantage of trading using opposite SENECA FOODS-A and COPLAND ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, COPLAND ROAD 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 COPLAND ROAD will offset losses from the drop in COPLAND ROAD's long position.| SENECA FOODS-A vs. JSC Halyk bank | SENECA FOODS-A vs. Casio Computer CoLtd | SENECA FOODS-A vs. CVB Financial Corp | SENECA FOODS-A vs. BANK OF CHINA |
| COPLAND ROAD vs. CanSino Biologics | COPLAND ROAD vs. Superior Plus Corp | COPLAND ROAD vs. NMI Holdings | COPLAND ROAD 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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