Correlation Between SENECA FOODS-A and FRACTAL GAMING

Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and FRACTAL GAMING 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 FRACTAL GAMING 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 FRACTAL GAMING GROUP, you can compare the effects of market volatilities on SENECA FOODS-A and FRACTAL GAMING 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 FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and FRACTAL GAMING.

Diversification Opportunities for SENECA FOODS-A and FRACTAL GAMING

0.78

Correlation Coefficient

SENECA FOODS-A  FRACTAL GAMING

Poor diversification

The 3 months correlation between SENECA and FRACTAL is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and FRACTAL GAMING go up and down completely randomly.

Pair Corralation between SENECA FOODS-A and FRACTAL GAMING

Assuming the 90 days trading horizon SENECA FOODS-A is expected to generate 1.35 times less return on investment than FRACTAL GAMING. In addition to that, SENECA FOODS-A is 1.28 times more volatile than FRACTAL GAMING GROUP. It trades about 0.17 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.3 per unit of volatility. If you would invest  294.00  in FRACTAL GAMING GROUP on April 20, 2025 and sell it today you would earn a total of  102.00  from holding FRACTAL GAMING GROUP or generate 34.69% 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.  FRACTAL GAMING GROUP

SENECA FOODS A

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SENECA FOODS A are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, SENECA FOODS-A exhibited solid returns over the last few months and may actually be approaching a breakup point.

FRACTAL GAMING GROUP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRACTAL GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SENECA FOODS-A and FRACTAL GAMING

The main advantage of trading using opposite SENECA FOODS-A and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.

The idea behind SENECA FOODS A and FRACTAL GAMING GROUP 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.