Correlation Between BOS Better and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both BOS Better 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 BOS Better and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS Better Online and Marfrig Global Foods, you can compare the effects of market volatilities on BOS Better 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 BOS Better with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Marfrig Global.
Diversification Opportunities for BOS Better and Marfrig Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BOS and Marfrig is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online 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 BOS Better 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 BOS Better Online 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 BOS Better i.e., BOS Better and Marfrig Global go up and down completely randomly.
Pair Corralation between BOS Better and Marfrig Global
Given the investment horizon of 90 days BOS Better Online is expected to generate 1.09 times more return on investment than Marfrig Global. However, BOS Better is 1.09 times more volatile than Marfrig Global Foods. It trades about 0.16 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about -0.27 per unit of risk. If you would invest 368.00 in BOS Better Online on November 29, 2024 and sell it today you would earn a total of 34.00 from holding BOS Better Online or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Marfrig Global Foods
Performance |
| Timeline |
| BOS Better Online |
| Marfrig Global Foods |
BOS Better and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Marfrig Global
The main advantage of trading using opposite BOS Better and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better 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.| BOS Better vs. Mynaric AG ADR | BOS Better vs. Knowles Cor | BOS Better vs. Comtech Telecommunications Corp | BOS Better vs. Ituran Location and |
| Marfrig Global vs. BRF SA ADR | Marfrig Global vs. Pilgrims Pride Corp | Marfrig Global vs. John B Sanfilippo | Marfrig Global vs. Seneca Foods Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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