Correlation Between SENECA FOODS-A and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on SENECA FOODS-A and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and TRADEGATE.
Diversification Opportunities for SENECA FOODS-A and TRADEGATE
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SENECA and TRADEGATE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and TRADEGATE go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and TRADEGATE
Assuming the 90 days trading horizon SENECA FOODS A is expected to under-perform the TRADEGATE. In addition to that, SENECA FOODS-A is 10.58 times more volatile than TRADEGATE. It trades about -0.13 of its total potential returns per unit of risk. TRADEGATE is currently generating about 0.0 per unit of volatility. If you would invest 9,000 in TRADEGATE on October 19, 2024 and sell it today you would earn a total of 0.00 from holding TRADEGATE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. TRADEGATE
Performance |
| Timeline |
| SENECA FOODS A |
| TRADEGATE |
SENECA FOODS-A and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and TRADEGATE
The main advantage of trading using opposite SENECA FOODS-A and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| SENECA FOODS-A vs. Summit Hotel Properties | SENECA FOODS-A vs. ADRIATIC METALS LS 013355 | SENECA FOODS-A vs. De Grey Mining | SENECA FOODS-A vs. INTERCONT HOTELS |
| TRADEGATE vs. Austevoll Seafood ASA | TRADEGATE vs. Meiko Electronics Co | TRADEGATE vs. SENECA FOODS A | TRADEGATE vs. Benchmark Electronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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