Correlation Between Marfrig Global and Baumer SA
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Baumer SA 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 Baumer SA 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 Baumer SA, you can compare the effects of market volatilities on Marfrig Global and Baumer SA 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 Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Baumer SA.
Diversification Opportunities for Marfrig Global and Baumer SA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marfrig and Baumer is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA 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 Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of Marfrig Global i.e., Marfrig Global and Baumer SA go up and down completely randomly.
Pair Corralation between Marfrig Global and Baumer SA
Assuming the 90 days trading horizon Marfrig Global Foods is expected to generate 1.39 times more return on investment than Baumer SA. However, Marfrig Global is 1.39 times more volatile than Baumer SA. It trades about 0.07 of its potential returns per unit of risk. Baumer SA is currently generating about 0.04 per unit of risk. If you would invest 574.00 in Marfrig Global Foods on November 2, 2024 and sell it today you would earn a total of 1,018 from holding Marfrig Global Foods or generate 177.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Marfrig Global Foods vs. Baumer SA
Performance |
| Timeline |
| Marfrig Global Foods |
| Baumer SA |
Marfrig Global and Baumer SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Baumer SA
The main advantage of trading using opposite Marfrig Global and Baumer SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Baumer SA 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 Baumer SA will offset losses from the drop in Baumer SA's long position.| Marfrig Global vs. JBS SA | Marfrig Global vs. Minerva SA | Marfrig Global vs. BRF SA | Marfrig Global vs. Companhia Siderrgica Nacional |
| Baumer SA vs. Credit Acceptance | Baumer SA vs. Capital One Financial | Baumer SA vs. Sumitomo Mitsui Financial | Baumer SA vs. Applied Materials, |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |