Correlation Between SENECA FOODS and Axfood AB
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS and Axfood AB 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 Axfood AB 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 Axfood AB, you can compare the effects of market volatilities on SENECA FOODS and Axfood AB 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 Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS and Axfood AB.
Diversification Opportunities for SENECA FOODS and Axfood AB
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SENECA and Axfood is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB 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 Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of SENECA FOODS i.e., SENECA FOODS and Axfood AB go up and down completely randomly.
Pair Corralation between SENECA FOODS and Axfood AB
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 0.9 times more return on investment than Axfood AB. However, SENECA FOODS A is 1.11 times less risky than Axfood AB. It trades about 0.08 of its potential returns per unit of risk. Axfood AB is currently generating about 0.05 per unit of risk. If you would invest 4,540 in SENECA FOODS A on September 14, 2024 and sell it today you would earn a total of 2,260 from holding SENECA FOODS A or generate 49.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SENECA FOODS A vs. Axfood AB
Performance |
| Timeline |
| SENECA FOODS A |
| Axfood AB |
SENECA FOODS and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS and Axfood AB
The main advantage of trading using opposite SENECA FOODS and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS position performs unexpectedly, Axfood AB 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc |
| Axfood AB vs. NISSIN FOODS HLDGS | Axfood AB vs. LIFEWAY FOODS | Axfood AB vs. Flowers Foods | Axfood AB vs. MOLSON RS BEVERAGE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |