Correlation Between SENECA FOODS-A and GLOBUS MEDICAL
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and GLOBUS MEDICAL 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 GLOBUS MEDICAL 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 GLOBUS MEDICAL A, you can compare the effects of market volatilities on SENECA FOODS-A and GLOBUS MEDICAL 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 GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and GLOBUS MEDICAL.
Diversification Opportunities for SENECA FOODS-A and GLOBUS MEDICAL
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SENECA and GLOBUS is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A 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 GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and GLOBUS MEDICAL go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and GLOBUS MEDICAL
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 1.62 times more return on investment than GLOBUS MEDICAL. However, SENECA FOODS-A is 1.62 times more volatile than GLOBUS MEDICAL A. It trades about 0.06 of its potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.08 per unit of risk. If you would invest 3,820 in SENECA FOODS A on November 6, 2024 and sell it today you would earn a total of 2,930 from holding SENECA FOODS A or generate 76.7% 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. GLOBUS MEDICAL A
Performance |
| Timeline |
| SENECA FOODS A |
| GLOBUS MEDICAL A |
SENECA FOODS-A and GLOBUS MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and GLOBUS MEDICAL
The main advantage of trading using opposite SENECA FOODS-A and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.| SENECA FOODS-A vs. Stag Industrial | SENECA FOODS-A vs. PLAYWAY SA ZY 10 | SENECA FOODS-A vs. PLAYTECH | SENECA FOODS-A vs. PLAY2CHILL SA ZY |
| GLOBUS MEDICAL vs. Cairo Communication SpA | GLOBUS MEDICAL vs. SK TELECOM TDADR | GLOBUS MEDICAL vs. Telecom Argentina SA | GLOBUS MEDICAL vs. China Communications Services |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |