Correlation Between SENECA FOODS and Identiv
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS and Identiv 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 and Identiv 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 Identiv, you can compare the effects of market volatilities on SENECA FOODS and Identiv 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 with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS and Identiv.
Diversification Opportunities for SENECA FOODS and Identiv
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SENECA and Identiv is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and SENECA FOODS 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of SENECA FOODS i.e., SENECA FOODS and Identiv go up and down completely randomly.
Pair Corralation between SENECA FOODS and Identiv
Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 0.89 times more return on investment than Identiv. However, SENECA FOODS A is 1.12 times less risky than Identiv. It trades about 0.27 of its potential returns per unit of risk. Identiv is currently generating about 0.15 per unit of risk. If you would invest 5,650 in SENECA FOODS A on August 30, 2024 and sell it today you would earn a total of 950.00 from holding SENECA FOODS A or generate 16.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. Identiv
Performance |
| Timeline |
| SENECA FOODS A |
| Identiv |
SENECA FOODS and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS and Identiv
The main advantage of trading using opposite SENECA FOODS and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Superior Plus Corp | SENECA FOODS vs. SIVERS SEMICONDUCTORS AB |
| Identiv vs. Corsair Gaming | Identiv vs. SENECA FOODS A | Identiv vs. Tyson Foods | Identiv vs. MYFAIR GOLD P |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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