Correlation Between SENECA FOODS-A and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD, you can compare the effects of market volatilities on SENECA FOODS-A and GWILLI FOOD 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 GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and GWILLI FOOD.
Diversification Opportunities for SENECA FOODS-A and GWILLI FOOD
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SENECA and GWILLI is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD 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 GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and GWILLI FOOD go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and GWILLI FOOD
Assuming the 90 days trading horizon SENECA FOODS-A is expected to generate 1.13 times less return on investment than GWILLI FOOD. In addition to that, SENECA FOODS-A is 1.04 times more volatile than GWILLI FOOD. It trades about 0.03 of its total potential returns per unit of risk. GWILLI FOOD is currently generating about 0.04 per unit of volatility. If you would invest 1,096 in GWILLI FOOD on October 16, 2024 and sell it today you would earn a total of 414.00 from holding GWILLI FOOD or generate 37.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. GWILLI FOOD
Performance |
| Timeline |
| SENECA FOODS A |
| GWILLI FOOD |
SENECA FOODS-A and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and GWILLI FOOD
The main advantage of trading using opposite SENECA FOODS-A and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD'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 |
| GWILLI FOOD vs. Austevoll Seafood ASA | GWILLI FOOD vs. SENECA FOODS A | GWILLI FOOD vs. CanSino Biologics | GWILLI FOOD vs. National Beverage Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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