Correlation Between SENECA FOODS-A and DAX Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between SENECA FOODS A and DAX Index, you can compare the effects of market volatilities on SENECA FOODS-A and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and DAX Index.
Diversification Opportunities for SENECA FOODS-A and DAX Index
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SENECA and DAX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and DAX Index go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and DAX Index
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 3.81 times more return on investment than DAX Index. However, SENECA FOODS-A is 3.81 times more volatile than DAX Index. It trades about 0.03 of its potential returns per unit of risk. DAX Index is currently generating about 0.08 per unit of risk. If you would invest 5,800 in SENECA FOODS A on October 9, 2024 and sell it today you would earn a total of 1,550 from holding SENECA FOODS A or generate 26.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. DAX Index
Performance |
| Timeline |
SENECA FOODS-A and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
SENECA FOODS A
Pair trading matchups for SENECA FOODS-A
DAX Index
Pair trading matchups for DAX Index
Pair Trading with SENECA FOODS-A and DAX Index
The main advantage of trading using opposite SENECA FOODS-A and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| SENECA FOODS-A vs. CHRYSALIS INVESTMENTS LTD | SENECA FOODS-A vs. BE Semiconductor Industries | SENECA FOODS-A vs. ON SEMICONDUCTOR | SENECA FOODS-A vs. WisdomTree Investments |
| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Direct Line Insurance | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |