Correlation Between SENECA FOODS-A and Fortive
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and Fortive 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 Fortive 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 Fortive, you can compare the effects of market volatilities on SENECA FOODS-A and Fortive 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 Fortive. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and Fortive.
Diversification Opportunities for SENECA FOODS-A and Fortive
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SENECA and Fortive is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and Fortive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortive 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 Fortive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortive has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and Fortive go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and Fortive
If you would invest 0.00 in Fortive on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Fortive or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
SENECA FOODS A vs. Fortive
Performance |
| Timeline |
| SENECA FOODS A |
| Fortive |
SENECA FOODS-A and Fortive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and Fortive
The main advantage of trading using opposite SENECA FOODS-A and Fortive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, Fortive 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 Fortive will offset losses from the drop in Fortive's long position.| SENECA FOODS-A vs. IMAGIN MEDICAL INC | SENECA FOODS-A vs. PEPTONIC MEDICAL | SENECA FOODS-A vs. INTERNET INJPADR 1 | SENECA FOODS-A vs. Diamyd Medical AB |
| Fortive vs. United Natural Foods | Fortive vs. CEOTRONICS | Fortive vs. ALERION CLEANPOWER | Fortive vs. Acadia Healthcare |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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