Correlation Between Seneca Foods and Blackrock Mid-cap

Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Blackrock Mid-cap 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 Blackrock Mid-cap 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 Blackrock Mid Cap Growth, you can compare the effects of market volatilities on Seneca Foods and Blackrock Mid-cap 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 Blackrock Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Blackrock Mid-cap.

Diversification Opportunities for Seneca Foods and Blackrock Mid-cap

0.34

Correlation Coefficient

Seneca Foods  Blackrock Mid-cap

Weak diversification

The 3 months correlation between Seneca and Blackrock is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Blackrock Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Mid Cap 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 Blackrock Mid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Mid Cap has no effect on the direction of Seneca Foods i.e., Seneca Foods and Blackrock Mid-cap go up and down completely randomly.

Pair Corralation between Seneca Foods and Blackrock Mid-cap

Assuming the 90 days horizon Seneca Foods Corp is expected to generate 2.24 times more return on investment than Blackrock Mid-cap. However, Seneca Foods is 2.24 times more volatile than Blackrock Mid Cap Growth. It trades about 0.17 of its potential returns per unit of risk. Blackrock Mid Cap Growth is currently generating about 0.12 per unit of risk. If you would invest  9,402  in Seneca Foods Corp on May 7, 2025 and sell it today you would earn a total of  1,197  from holding Seneca Foods Corp or generate 12.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	48.39%
Values	Daily Returns

Seneca Foods Corp  vs.  Blackrock Mid Cap Growth

Seneca Foods Corp

Risk-Adjusted Performance

Good

Over the last 90 days Seneca Foods Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat unsteady technical and fundamental indicators, Seneca Foods sustained solid returns over the last few months and may actually be approaching a breakup point.

Blackrock Mid Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Mid Cap Growth are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Blackrock Mid-cap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Seneca Foods and Blackrock Mid-cap

The main advantage of trading using opposite Seneca Foods and Blackrock Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seneca Foods position performs unexpectedly, Blackrock Mid-cap 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 Blackrock Mid-cap will offset losses from the drop in Blackrock Mid-cap's long position.

The idea behind Seneca Foods Corp and Blackrock Mid Cap Growth 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.