Correlation Between Kellanova and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both Kellanova and Seneca Foods 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 Kellanova and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Seneca Foods Corp, you can compare the effects of market volatilities on Kellanova and Seneca Foods 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 Kellanova with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Seneca Foods.
Diversification Opportunities for Kellanova and Seneca Foods
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kellanova and Seneca is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Seneca Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seneca Foods Corp and Kellanova 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 Kellanova are associated (or correlated) with Seneca Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seneca Foods Corp has no effect on the direction of Kellanova i.e., Kellanova and Seneca Foods go up and down completely randomly.
Pair Corralation between Kellanova and Seneca Foods
Taking into account the 90-day investment horizon Kellanova is expected to generate 3.21 times less return on investment than Seneca Foods. But when comparing it to its historical volatility, Kellanova is 2.19 times less risky than Seneca Foods. It trades about 0.06 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,740 in Seneca Foods Corp on January 30, 2024 and sell it today you would earn a total of 162.00 from holding Seneca Foods Corp or generate 2.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 77.27% |
Values | Daily Returns |
Kellanova vs. Seneca Foods Corp
Performance |
Timeline |
Kellanova |
Seneca Foods Corp |
Kellanova and Seneca Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kellanova and Seneca Foods
The main advantage of trading using opposite Kellanova and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Seneca Foods 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 Seneca Foods will offset losses from the drop in Seneca Foods' long position.Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
Seneca Foods vs. Bridgford Foods | Seneca Foods vs. J J Snack | Seneca Foods vs. Central Garden Pet | Seneca Foods vs. Central Garden Pet |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
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 | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |