Correlation Between National Rural and Seneca Foods
Can any of the company-specific risk be diversified away by investing in both National Rural 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 National Rural and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Rural Utilities and Seneca Foods, you can compare the effects of market volatilities on National Rural 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 National Rural with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Rural and Seneca Foods.
Diversification Opportunities for National Rural and Seneca Foods
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and Seneca is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding National Rural Utilities and Seneca Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seneca Foods and National Rural 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 National Rural Utilities 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 has no effect on the direction of National Rural i.e., National Rural and Seneca Foods go up and down completely randomly.
Pair Corralation between National Rural and Seneca Foods
Given the investment horizon of 90 days National Rural Utilities is expected to under-perform the Seneca Foods. In addition to that, National Rural is 1.69 times more volatile than Seneca Foods. It trades about -0.09 of its total potential returns per unit of risk. Seneca Foods is currently generating about -0.12 per unit of volatility. If you would invest 11,250 in Seneca Foods on September 6, 2025 and sell it today you would lose (250.00) from holding Seneca Foods or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
National Rural Utilities vs. Seneca Foods
Performance |
| Timeline |
| National Rural Utilities |
| Seneca Foods |
National Rural and Seneca Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Rural and Seneca Foods
The main advantage of trading using opposite National Rural and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Rural 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.| National Rural vs. Shenzhen Investment Holdings | National Rural vs. AG Mortgage Investment | National Rural vs. Suntory Beverage Food | National Rural vs. Bebida Beverage Co |
| Seneca Foods vs. NH Foods Ltd | Seneca Foods vs. BG Foods | Seneca Foods vs. Smithfield Foods, Common | Seneca Foods vs. Juma Technology Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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