Correlation Between General Mills and SenesTech

Can any of the company-specific risk be diversified away by investing in both General Mills and SenesTech 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 General Mills and SenesTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between General Mills and SenesTech, you can compare the effects of market volatilities on General Mills and SenesTech 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 General Mills with a short position of SenesTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and SenesTech.

Diversification Opportunities for General Mills and SenesTech

0.0

Correlation Coefficient

General Mills  SenesTech

Pay attention - limited upside

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

Pair Corralation between General Mills and SenesTech

If you would invest  6,247  in General Mills on January 25, 2024 and sell it today you would earn a total of  914.00  from holding General Mills or generate 14.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.97%
Values	Daily Returns

General Mills  vs.  SenesTech

General Mills

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in General Mills are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, General Mills may actually be approaching a critical reversion point that can send shares even higher in May 2024.

SenesTech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SenesTech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical indicators, SenesTech is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with General Mills and SenesTech

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

The idea behind General Mills and SenesTech 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.