Correlation Between Contagious Gaming and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming 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 Contagious Gaming and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and Marfrig Global Foods, you can compare the effects of market volatilities on Contagious Gaming 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 Contagious Gaming with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and Marfrig Global.
Diversification Opportunities for Contagious Gaming and Marfrig Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contagious and Marfrig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming 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 Contagious Gaming 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 Contagious Gaming 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 Contagious Gaming i.e., Contagious Gaming and Marfrig Global go up and down completely randomly.
Pair Corralation between Contagious Gaming and Marfrig Global
Assuming the 90 days horizon Contagious Gaming is expected to generate 8.93 times less return on investment than Marfrig Global. In addition to that, Contagious Gaming is 2.18 times more volatile than Marfrig Global Foods. It trades about 0.0 of its total potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.07 per unit of volatility. If you would invest 122.00 in Marfrig Global Foods on September 3, 2024 and sell it today you would earn a total of 183.00 from holding Marfrig Global Foods or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Contagious Gaming vs. Marfrig Global Foods
Performance |
| Timeline |
| Contagious Gaming |
| Marfrig Global Foods |
Contagious Gaming and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contagious Gaming and Marfrig Global
The main advantage of trading using opposite Contagious Gaming and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming 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.| Contagious Gaming vs. US Global Investors | Contagious Gaming vs. Waste Management | Contagious Gaming vs. Viemed Healthcare | Contagious Gaming vs. Omni Health |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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