Correlation Between A2 Milk and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both A2 Milk and Marfrig Global 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 A2 Milk and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The A2 Milk and Marfrig Global Foods, you can compare the effects of market volatilities on A2 Milk and Marfrig Global 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 A2 Milk with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2 Milk and Marfrig Global.
Diversification Opportunities for A2 Milk and Marfrig Global
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACOPY and Marfrig is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding The A2 Milk and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods and A2 Milk 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 The A2 Milk are associated (or correlated) with Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of A2 Milk i.e., A2 Milk and Marfrig Global go up and down completely randomly.
Pair Corralation between A2 Milk and Marfrig Global
Assuming the 90 days horizon The A2 Milk is expected to under-perform the Marfrig Global. In addition to that, A2 Milk is 1.56 times more volatile than Marfrig Global Foods. It trades about -0.08 of its total potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.28 per unit of volatility. If you would invest 255.00 in Marfrig Global Foods on August 28, 2024 and sell it today you would earn a total of 53.00 from holding Marfrig Global Foods or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The A2 Milk vs. Marfrig Global Foods
Performance |
| Timeline |
| A2 Milk |
| Marfrig Global Foods |
A2 Milk and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A2 Milk and Marfrig Global
The main advantage of trading using opposite A2 Milk and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2 Milk position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.| A2 Milk vs. Avi Ltd ADR | A2 Milk vs. Altavoz Entertainment | A2 Milk vs. Aryzta AG PK | A2 Milk vs. Artisan Consumer Goods |
| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. The A2 Milk | Marfrig Global vs. BioAdaptives | Marfrig Global vs. General Mills |
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 the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |