Correlation Between Marfrig Global and Applied Materials,
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Applied Materials, 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 Marfrig Global and Applied Materials, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfrig Global Foods and Applied Materials,, you can compare the effects of market volatilities on Marfrig Global and Applied Materials, 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 Marfrig Global with a short position of Applied Materials,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Applied Materials,.
Diversification Opportunities for Marfrig Global and Applied Materials,
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marfrig and Applied is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Applied Materials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials, and Marfrig Global 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 Marfrig Global Foods are associated (or correlated) with Applied Materials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials, has no effect on the direction of Marfrig Global i.e., Marfrig Global and Applied Materials, go up and down completely randomly.
Pair Corralation between Marfrig Global and Applied Materials,
Assuming the 90 days trading horizon Marfrig Global Foods is expected to generate 0.9 times more return on investment than Applied Materials,. However, Marfrig Global Foods is 1.11 times less risky than Applied Materials,. It trades about 0.15 of its potential returns per unit of risk. Applied Materials, is currently generating about 0.01 per unit of risk. If you would invest 960.00 in Marfrig Global Foods on October 26, 2024 and sell it today you would earn a total of 604.00 from holding Marfrig Global Foods or generate 62.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Applied Materials,
Performance |
| Timeline |
| Marfrig Global Foods |
| Applied Materials, |
Marfrig Global and Applied Materials, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Applied Materials,
The main advantage of trading using opposite Marfrig Global and Applied Materials, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Applied Materials, 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 Applied Materials, will offset losses from the drop in Applied Materials,'s long position.| Marfrig Global vs. JBS SA | Marfrig Global vs. Minerva SA | Marfrig Global vs. BRF SA | Marfrig Global vs. Companhia Siderrgica Nacional |
| Applied Materials, vs. Alaska Air Group, | Applied Materials, vs. Zoom Video Communications | Applied Materials, vs. Telecomunicaes Brasileiras SA | Applied Materials, vs. Marfrig Global Foods |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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