Correlation Between Seneca Foods and Meiwu Technology

Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Meiwu Technology 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 Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Seneca Foods Corp and Meiwu Technology Co, you can compare the effects of market volatilities on Seneca Foods and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Meiwu Technology.

Diversification Opportunities for Seneca Foods and Meiwu Technology

0.0

Correlation Coefficient

Seneca Foods  Meiwu Technology

Pay attention - limited upside

The 3 months correlation between Seneca and Meiwu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Corp are associated (or correlated) with Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Seneca Foods i.e., Seneca Foods and Meiwu Technology go up and down completely randomly.

Pair Corralation between Seneca Foods and Meiwu Technology

If you would invest  335.00  in Meiwu Technology Co on February 3, 2025 and sell it today you would lose (112.00) from holding Meiwu Technology Co or give up 33.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Seneca Foods Corp  vs.  Meiwu Technology Co

Seneca Foods Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seneca Foods Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Seneca Foods is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Meiwu Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meiwu Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, Meiwu Technology may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Seneca Foods and Meiwu Technology

The main advantage of trading using opposite Seneca Foods and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.

The idea behind Seneca Foods Corp and Meiwu Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.