Correlation Between Akebono Brake and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Akebono Brake 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 Akebono Brake and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akebono Brake Industry and Marfrig Global Foods, you can compare the effects of market volatilities on Akebono Brake 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 Akebono Brake with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akebono Brake and Marfrig Global.
Diversification Opportunities for Akebono Brake and Marfrig Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akebono and Marfrig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akebono Brake Industry 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 Akebono Brake 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 Akebono Brake Industry 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 Akebono Brake i.e., Akebono Brake and Marfrig Global go up and down completely randomly.
Pair Corralation between Akebono Brake and Marfrig Global
If you would invest 246.00 in Marfrig Global Foods on August 30, 2024 and sell it today you would earn a total of 66.00 from holding Marfrig Global Foods or generate 26.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Akebono Brake Industry vs. Marfrig Global Foods
Performance |
| Timeline |
| Akebono Brake Industry |
| Marfrig Global Foods |
Akebono Brake and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akebono Brake and Marfrig Global
The main advantage of trading using opposite Akebono Brake and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akebono Brake 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.| Akebono Brake vs. The Gap, | Akebono Brake vs. Olympic Steel | Akebono Brake vs. Asbury Automotive Group | Akebono Brake vs. Brandywine Realty Trust |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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