Correlation Between Seneca Foods and Gaotu Techedu
Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Gaotu Techedu 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 Gaotu Techedu 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 Gaotu Techedu DRC, you can compare the effects of market volatilities on Seneca Foods and Gaotu Techedu 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 Gaotu Techedu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Gaotu Techedu.
Diversification Opportunities for Seneca Foods and Gaotu Techedu
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seneca and Gaotu is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Gaotu Techedu DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaotu Techedu DRC 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 Gaotu Techedu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaotu Techedu DRC has no effect on the direction of Seneca Foods i.e., Seneca Foods and Gaotu Techedu go up and down completely randomly.
Pair Corralation between Seneca Foods and Gaotu Techedu
Assuming the 90 days horizon Seneca Foods Corp is expected to generate 0.85 times more return on investment than Gaotu Techedu. However, Seneca Foods Corp is 1.17 times less risky than Gaotu Techedu. It trades about 0.0 of its potential returns per unit of risk. Gaotu Techedu DRC is currently generating about -0.12 per unit of risk. If you would invest 11,205 in Seneca Foods Corp on October 8, 2025 and sell it today you would lose (164.00) from holding Seneca Foods Corp or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seneca Foods Corp vs. Gaotu Techedu DRC
Performance |
| Timeline |
| Seneca Foods Corp |
| Gaotu Techedu DRC |
Seneca Foods and Gaotu Techedu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seneca Foods and Gaotu Techedu
The main advantage of trading using opposite Seneca Foods and Gaotu Techedu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, Gaotu Techedu 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 Gaotu Techedu will offset losses from the drop in Gaotu Techedu's long position.| Seneca Foods vs. John B Sanfilippo | Seneca Foods vs. Natural Grocers by | Seneca Foods vs. Herbalife Nutrition | Seneca Foods vs. Beyond Meat |
| Gaotu Techedu vs. Udemy Inc | Gaotu Techedu vs. Afya | Gaotu Techedu vs. Phoenix Education Partners | Gaotu Techedu vs. KinderCare Learning Companies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |