Correlation Between SENECA FOODS-A and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and CONAGRA FOODS 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 CONAGRA FOODS 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 CONAGRA FOODS, you can compare the effects of market volatilities on SENECA FOODS-A and CONAGRA FOODS 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 CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and CONAGRA FOODS.
Diversification Opportunities for SENECA FOODS-A and CONAGRA FOODS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SENECA and CONAGRA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS 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 CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and CONAGRA FOODS
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 2.21 times more return on investment than CONAGRA FOODS. However, SENECA FOODS-A is 2.21 times more volatile than CONAGRA FOODS. It trades about 0.3 of its potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.1 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. CONAGRA FOODS
Performance |
| Timeline |
| SENECA FOODS A |
| CONAGRA FOODS |
SENECA FOODS-A and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and CONAGRA FOODS
The main advantage of trading using opposite SENECA FOODS-A and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, CONAGRA FOODS 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| SENECA FOODS-A vs. Apple Inc | SENECA FOODS-A vs. Apple Inc | SENECA FOODS-A vs. Microsoft | SENECA FOODS-A vs. Microsoft |
| CONAGRA FOODS vs. Harmony Gold Mining | CONAGRA FOODS vs. WILLIS LEASE FIN | CONAGRA FOODS vs. SHIN ETSU CHEMICAL | CONAGRA FOODS vs. WESTLAKE CHEMICAL |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |