Correlation Between Marfrig Global and Bemobi Mobile
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Bemobi Mobile 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 Bemobi Mobile 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 Bemobi Mobile Tech, you can compare the effects of market volatilities on Marfrig Global and Bemobi Mobile 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 Bemobi Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Bemobi Mobile.
Diversification Opportunities for Marfrig Global and Bemobi Mobile
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Marfrig and Bemobi is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech 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 Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of Marfrig Global i.e., Marfrig Global and Bemobi Mobile go up and down completely randomly.
Pair Corralation between Marfrig Global and Bemobi Mobile
Assuming the 90 days trading horizon Marfrig Global Foods is expected to generate 1.29 times more return on investment than Bemobi Mobile. However, Marfrig Global is 1.29 times more volatile than Bemobi Mobile Tech. It trades about 0.45 of its potential returns per unit of risk. Bemobi Mobile Tech is currently generating about -0.11 per unit of risk. If you would invest 1,476 in Marfrig Global Foods on August 28, 2024 and sell it today you would earn a total of 360.00 from holding Marfrig Global Foods or generate 24.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Bemobi Mobile Tech
Performance |
| Timeline |
| Marfrig Global Foods |
| Bemobi Mobile Tech |
Marfrig Global and Bemobi Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Bemobi Mobile
The main advantage of trading using opposite Marfrig Global and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Bemobi Mobile 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 Bemobi Mobile will offset losses from the drop in Bemobi Mobile's long position.| Marfrig Global vs. Minerva SA | Marfrig Global vs. Companhia Siderrgica Nacional | Marfrig Global vs. Cyrela Brazil Realty |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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