Correlation Between Seneca Foods and Alpha Architect

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

Diversification Opportunities for Seneca Foods and Alpha Architect

0.0

Correlation Coefficient

Seneca Foods  Alpha Architect

Pay attention - limited upside

The 3 months correlation between Seneca and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Corp and Alpha Architect ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Architect ETF 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 Alpha Architect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Architect ETF has no effect on the direction of Seneca Foods i.e., Seneca Foods and Alpha Architect go up and down completely randomly.

Pair Corralation between Seneca Foods and Alpha Architect

If you would invest  0.00  in Seneca Foods Corp on February 3, 2025 and sell it today you would earn a total of  0.00  from holding Seneca Foods Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Seneca Foods Corp  vs.  Alpha Architect ETF

Seneca Foods Corp

Risk-Adjusted Performance

Very Weak

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

Alpha Architect ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alpha Architect ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Seneca Foods and Alpha Architect

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

The idea behind Seneca Foods Corp and Alpha Architect ETF 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 Commodity Directory module to find actively traded commodities issued by global exchanges.