Correlation Between Seneca Foods and Nio Inc

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Seneca Foods and Nio Inc 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 Nio Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seneca Foods Cp and Nio Inc ADR, you can compare the effects of market volatilities on Seneca Foods and Nio Inc 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 Nio Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seneca Foods and Nio Inc.

Diversification Opportunities for Seneca Foods and Nio Inc

  Correlation Coefficient

Modest diversification

The 3 months correlation between Seneca and Nio Inc is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Seneca Foods Cp and Nio Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nio Inc ADR 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 Cp are associated (or correlated) with Nio Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nio Inc ADR has no effect on the direction of Seneca Foods i.e., Seneca Foods and Nio Inc go up and down completely randomly.

Pair Corralation between Seneca Foods and Nio Inc

Assuming the 90 days horizon Seneca Foods is expected to generate 3.23 times less return on investment than Nio Inc. But when comparing it to its historical volatility, Seneca Foods Cp is 1.71 times less risky than Nio Inc. It trades about 0.08 of its potential returns per unit of risk. Nio Inc ADR is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,310  in Nio Inc ADR on May 12, 2022 and sell it today you would earn a total of  695.00  from holding Nio Inc ADR or generate 53.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
ValuesDaily Returns

Seneca Foods Cp  vs.  Nio Inc ADR

 Performance (%) 
Seneca Foods Cp 
Seneca Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Seneca Foods Cp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. 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.

Seneca Price Channel

Nio Inc ADR 
Nio Inc Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Nio Inc ADR are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady forward indicators, Nio Inc disclosed solid returns over the last few months and may actually be approaching a breakup point.

Nio Inc Price Channel

Seneca Foods and Nio Inc Volatility Contrast

   Predicted Return Density   

Pair Trading with Seneca Foods and Nio Inc

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

Seneca Foods Cp

Pair trading matchups for Seneca Foods

The idea behind Seneca Foods Cp and Nio Inc ADR 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.

Nio Inc ADR

Pair trading matchups for Nio Inc

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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency