Correlation Between Boot Barn and Seneca Foods

Can any of the company-specific risk be diversified away by investing in both Boot Barn 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 Boot Barn and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boot Barn Holdings and Seneca Foods, you can compare the effects of market volatilities on Boot Barn 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 Boot Barn with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boot Barn and Seneca Foods.

Diversification Opportunities for Boot Barn and Seneca Foods

0.0

Correlation Coefficient

Boot Barn  Seneca Foods

Pay attention - limited upside

The 3 months correlation between Boot and Seneca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boot Barn Holdings and Seneca Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seneca Foods and Boot Barn 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 Boot Barn Holdings 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 Boot Barn i.e., Boot Barn and Seneca Foods go up and down completely randomly.

Pair Corralation between Boot Barn and Seneca Foods

If you would invest  11,250  in Seneca Foods on August 28, 2025 and sell it today you would earn a total of  0.00  from holding Seneca Foods or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Boot Barn Holdings  vs.  Seneca Foods

Boot Barn Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Boot Barn Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Boot Barn may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Seneca Foods

Risk-Adjusted Performance

Weakest

Over the last 90 days Seneca Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Seneca Foods is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Boot Barn and Seneca Foods

The main advantage of trading using opposite Boot Barn and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boot Barn 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 Boot Barn Holdings and Seneca Foods 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.