Correlation Between SENECA FOODS-A and GOME Retail
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and GOME Retail 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 GOME Retail 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 GOME Retail Holdings, you can compare the effects of market volatilities on SENECA FOODS-A and GOME Retail 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 GOME Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and GOME Retail.
Diversification Opportunities for SENECA FOODS-A and GOME Retail
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SENECA and GOME is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and GOME Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOME Retail Holdings 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 GOME Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOME Retail Holdings has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and GOME Retail go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and GOME Retail
If you would invest 0.10 in GOME Retail Holdings on November 7, 2024 and sell it today you would earn a total of 0.00 from holding GOME Retail Holdings or generate 0.0% 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. GOME Retail Holdings
Performance |
| Timeline |
| SENECA FOODS A |
| GOME Retail Holdings |
SENECA FOODS-A and GOME Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and GOME Retail
The main advantage of trading using opposite SENECA FOODS-A and GOME Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, GOME Retail 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 GOME Retail will offset losses from the drop in GOME Retail's long position.| SENECA FOODS-A vs. MICRONIC MYDATA | SENECA FOODS-A vs. MOLSON RS BEVERAGE | SENECA FOODS-A vs. MUTUIONLINE | SENECA FOODS-A vs. DATAGROUP SE |
| GOME Retail vs. HANOVER INSURANCE | GOME Retail vs. Laureate Education | GOME Retail vs. QBE Insurance Group | GOME Retail vs. REVO INSURANCE SPA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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