Correlation Between Ingles Markets and Seneca Foods

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Can any of the company-specific risk be diversified away by investing in both Ingles Markets 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 Ingles Markets and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingles Markets Incorporated and Seneca Foods Corp, you can compare the effects of market volatilities on Ingles Markets 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 Ingles Markets with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingles Markets and Seneca Foods.

Diversification Opportunities for Ingles Markets and Seneca Foods

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ingles and Seneca is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ingles Markets Incorporated 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 Ingles Markets 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 Ingles Markets Incorporated 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 Ingles Markets i.e., Ingles Markets and Seneca Foods go up and down completely randomly.

Pair Corralation between Ingles Markets and Seneca Foods

Assuming the 90 days horizon Ingles Markets Incorporated is expected to generate 0.76 times more return on investment than Seneca Foods. However, Ingles Markets Incorporated is 1.32 times less risky than Seneca Foods. It trades about 0.15 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.08 per unit of risk. If you would invest  6,362  in Ingles Markets Incorporated on August 14, 2025 and sell it today you would earn a total of  938.00  from holding Ingles Markets Incorporated or generate 14.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ingles Markets Incorporated  vs.  Seneca Foods Corp

 Performance 
       Timeline  
Ingles Markets 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ingles Markets Incorporated are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Ingles Markets sustained solid returns over the last few months and may actually be approaching a breakup point.
Seneca Foods Corp 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Seneca Foods Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Seneca Foods may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Ingles Markets and Seneca Foods Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ingles Markets and Seneca Foods

The main advantage of trading using opposite Ingles Markets and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingles Markets 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.
The idea behind Ingles Markets Incorporated and Seneca Foods Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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