Correlation Between SENECA FOODS-A and Apollo Investment

Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A and Apollo Investment 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-A and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SENECA FOODS A and Apollo Investment Corp, you can compare the effects of market volatilities on SENECA FOODS-A and Apollo Investment 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-A with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and Apollo Investment.

Diversification Opportunities for SENECA FOODS-A and Apollo Investment

-0.42

Correlation Coefficient

SENECA FOODS-A  Apollo Investment

Very good diversification

The 3 months correlation between SENECA and Apollo is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and SENECA FOODS-A 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 A are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of SENECA FOODS-A i.e., SENECA FOODS-A and Apollo Investment go up and down completely randomly.

Pair Corralation between SENECA FOODS-A and Apollo Investment

Assuming the 90 days trading horizon SENECA FOODS A is expected to generate 1.43 times more return on investment than Apollo Investment. However, SENECA FOODS-A is 1.43 times more volatile than Apollo Investment Corp. It trades about 0.1 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about -0.03 per unit of risk. If you would invest  7,200  in SENECA FOODS A on December 30, 2024 and sell it today you would earn a total of  750.00  from holding SENECA FOODS A or generate 10.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SENECA FOODS A  vs.  Apollo Investment Corp

SENECA FOODS A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SENECA FOODS A are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, SENECA FOODS-A may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Apollo Investment Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Apollo Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SENECA FOODS-A and Apollo Investment

The main advantage of trading using opposite SENECA FOODS-A and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.

The idea behind SENECA FOODS A and Apollo Investment 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..