Correlation Between SENECA FOODS-A and FABASOFT -
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and FABASOFT - 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 FABASOFT - 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 FABASOFT Dusseldorf, you can compare the effects of market volatilities on SENECA FOODS-A and FABASOFT - 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 FABASOFT -. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and FABASOFT -.
Diversification Opportunities for SENECA FOODS-A and FABASOFT -
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SENECA and FABASOFT is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and FABASOFT Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FABASOFT Dusseldorf 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 FABASOFT -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FABASOFT Dusseldorf has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and FABASOFT - go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and FABASOFT -
Assuming the 90 days trading horizon SENECA FOODS A is expected to under-perform the FABASOFT -. In addition to that, SENECA FOODS-A is 1.96 times more volatile than FABASOFT Dusseldorf. It trades about -0.19 of its total potential returns per unit of risk. FABASOFT Dusseldorf is currently generating about -0.15 per unit of volatility. If you would invest 1,660 in FABASOFT Dusseldorf on October 17, 2024 and sell it today you would lose (50.00) from holding FABASOFT Dusseldorf or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. FABASOFT Dusseldorf
Performance |
| Timeline |
| SENECA FOODS A |
| FABASOFT Dusseldorf |
SENECA FOODS-A and FABASOFT - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and FABASOFT -
The main advantage of trading using opposite SENECA FOODS-A and FABASOFT - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, FABASOFT - 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 FABASOFT - will offset losses from the drop in FABASOFT -'s long position.| SENECA FOODS-A vs. PARKEN Sport Entertainment | SENECA FOODS-A vs. Gaztransport Technigaz SA | SENECA FOODS-A vs. BII Railway Transportation | SENECA FOODS-A vs. AEGEAN AIRLINES |
| FABASOFT - vs. SOLSTAD OFFSHORE NK | FABASOFT - vs. SIEM OFFSHORE NEW | FABASOFT - vs. SENECA FOODS A | FABASOFT - vs. Plastic Omnium |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |