Correlation Between MDU Resources and Seaboard
Can any of the company-specific risk be diversified away by investing in both MDU Resources and Seaboard 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 MDU Resources and Seaboard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MDU Resources Group and Seaboard, you can compare the effects of market volatilities on MDU Resources and Seaboard 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 MDU Resources with a short position of Seaboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of MDU Resources and Seaboard.
Diversification Opportunities for MDU Resources and Seaboard
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MDU and Seaboard is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding MDU Resources Group and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard and MDU Resources 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 MDU Resources Group are associated (or correlated) with Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of MDU Resources i.e., MDU Resources and Seaboard go up and down completely randomly.
Pair Corralation between MDU Resources and Seaboard
Considering the 90-day investment horizon MDU Resources Group is expected to generate 0.72 times more return on investment than Seaboard. However, MDU Resources Group is 1.4 times less risky than Seaboard. It trades about 0.16 of its potential returns per unit of risk. Seaboard is currently generating about 0.09 per unit of risk. If you would invest 1,672 in MDU Resources Group on July 24, 2025 and sell it today you would earn a total of 263.00 from holding MDU Resources Group or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MDU Resources Group vs. Seaboard
Performance |
| Timeline |
| MDU Resources Group |
| Seaboard |
MDU Resources and Seaboard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MDU Resources and Seaboard
The main advantage of trading using opposite MDU Resources and Seaboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MDU Resources position performs unexpectedly, Seaboard 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 Seaboard will offset losses from the drop in Seaboard's long position.| MDU Resources vs. Seaboard | MDU Resources vs. Powell Industries | MDU Resources vs. Griffon | MDU Resources vs. Mueller Water Products |
| Seaboard vs. Griffon | Seaboard vs. MDU Resources Group | Seaboard vs. Brookfield Business Partners | Seaboard vs. Robert Half International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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