Correlation Between Walker Dunlop and Seneca Foods

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Can any of the company-specific risk be diversified away by investing in both Walker Dunlop 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 Walker Dunlop and Seneca Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Seneca Foods Corp, you can compare the effects of market volatilities on Walker Dunlop 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 Walker Dunlop with a short position of Seneca Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Seneca Foods.

Diversification Opportunities for Walker Dunlop and Seneca Foods

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Walker and Seneca is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Seneca Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seneca Foods Corp and Walker Dunlop 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 Walker Dunlop 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 Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Seneca Foods go up and down completely randomly.

Pair Corralation between Walker Dunlop and Seneca Foods

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.31 times more return on investment than Seneca Foods. However, Walker Dunlop is 1.31 times more volatile than Seneca Foods Corp. It trades about 0.12 of its potential returns per unit of risk. Seneca Foods Corp is currently generating about 0.15 per unit of risk. If you would invest  8,425  in Walker Dunlop on September 3, 2022 and sell it today you would earn a total of  665.00  from holding Walker Dunlop or generate 7.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Walker Dunlop  vs.  Seneca Foods Corp

 Performance (%) 
       Timeline  
Walker Dunlop 
Walker Performance
0 of 100
Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Walker Dunlop is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Walker Price Channel

Seneca Foods Corp 
Seneca Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Seneca Foods Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak 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

Walker Dunlop and Seneca Foods Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Walker Dunlop and Seneca Foods

The main advantage of trading using opposite Walker Dunlop and Seneca Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop 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.
Walker Dunlop vs. Linde PLC
Walker Dunlop vs. GROWTH FUND OF
Walker Dunlop vs. VANGUARD SMALL-CAP GROWTH
The idea behind Walker Dunlop and Seneca Foods Corp 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.
Seneca Foods vs. GROWTH FUND OF
Seneca Foods vs. VANGUARD SMALL-CAP GROWTH
Seneca Foods vs. Alcoa Corp
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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