Correlation Between Beyond Meat and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Beyond Meat 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 Beyond Meat and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Marfrig Global Foods, you can compare the effects of market volatilities on Beyond Meat 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 Beyond Meat with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Marfrig Global.
Diversification Opportunities for Beyond Meat and Marfrig Global
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beyond and Marfrig is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat 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 Beyond Meat 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 Beyond Meat 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 Beyond Meat i.e., Beyond Meat and Marfrig Global go up and down completely randomly.
Pair Corralation between Beyond Meat and Marfrig Global
Given the investment horizon of 90 days Beyond Meat is expected to generate 0.91 times more return on investment than Marfrig Global. However, Beyond Meat is 1.1 times less risky than Marfrig Global. It trades about 0.0 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about -0.16 per unit of risk. If you would invest 400.00 in Beyond Meat on November 11, 2024 and sell it today you would lose (8.00) from holding Beyond Meat or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Marfrig Global Foods
Performance |
| Timeline |
| Beyond Meat |
| Marfrig Global Foods |
Beyond Meat and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Marfrig Global
The main advantage of trading using opposite Beyond Meat and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat 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.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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