Correlation Between Anterix and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Anterix 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 Anterix and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and Marfrig Global Foods, you can compare the effects of market volatilities on Anterix 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 Anterix with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and Marfrig Global.
Diversification Opportunities for Anterix and Marfrig Global
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anterix and Marfrig is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Anterix 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 Anterix 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 Anterix 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 Anterix i.e., Anterix and Marfrig Global go up and down completely randomly.
Pair Corralation between Anterix and Marfrig Global
Given the investment horizon of 90 days Anterix is expected to under-perform the Marfrig Global. But the stock apears to be less risky and, when comparing its historical volatility, Anterix is 1.43 times less risky than Marfrig Global. The stock trades about -0.01 of its potential returns per unit of risk. The Marfrig Global Foods is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 201.00 in Marfrig Global Foods on September 1, 2024 and sell it today you would earn a total of 109.00 from holding Marfrig Global Foods or generate 54.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anterix vs. Marfrig Global Foods
Performance |
| Timeline |
| Anterix |
| Marfrig Global Foods |
Anterix and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anterix and Marfrig Global
The main advantage of trading using opposite Anterix and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix 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.| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
| Marfrig Global vs. The A2 Milk | Marfrig Global vs. Altavoz Entertainment | Marfrig Global vs. Artisan Consumer Goods | 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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