Correlation Between Aryzta AG and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Aryzta AG 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 Aryzta AG and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aryzta AG PK and Marfrig Global Foods, you can compare the effects of market volatilities on Aryzta AG 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 Aryzta AG with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aryzta AG and Marfrig Global.
Diversification Opportunities for Aryzta AG and Marfrig Global
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aryzta and Marfrig is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aryzta AG PK 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 Aryzta AG 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 Aryzta AG PK 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 Aryzta AG i.e., Aryzta AG and Marfrig Global go up and down completely randomly.
Pair Corralation between Aryzta AG and Marfrig Global
Assuming the 90 days horizon Aryzta AG PK is expected to under-perform the Marfrig Global. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aryzta AG PK is 1.2 times less risky than Marfrig Global. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Marfrig Global Foods is currently generating about 0.28 of returns per unit of risk over similar time horizon. 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 | 100.0% |
| Values | Daily Returns |
Aryzta AG PK vs. Marfrig Global Foods
Performance |
| Timeline |
| Aryzta AG PK |
| Marfrig Global Foods |
Aryzta AG and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aryzta AG and Marfrig Global
The main advantage of trading using opposite Aryzta AG and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aryzta AG 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.| Aryzta AG vs. Artisan Consumer Goods | Aryzta AG vs. The A2 Milk | Aryzta AG vs. BioAdaptives | Aryzta AG vs. General Mills |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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