Correlation Between Marfrig Global and Kroger
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Kroger 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 Kroger 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 The Kroger Co, you can compare the effects of market volatilities on Marfrig Global and Kroger 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 Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Kroger.
Diversification Opportunities for Marfrig Global and Kroger
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marfrig and Kroger is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger 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 Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Kroger has no effect on the direction of Marfrig Global i.e., Marfrig Global and Kroger go up and down completely randomly.
Pair Corralation between Marfrig Global and Kroger
Assuming the 90 days trading horizon Marfrig Global Foods is expected to under-perform the Kroger. In addition to that, Marfrig Global is 1.71 times more volatile than The Kroger Co. It trades about -0.06 of its total potential returns per unit of risk. The Kroger Co is currently generating about 0.01 per unit of volatility. If you would invest 37,126 in The Kroger Co on November 7, 2024 and sell it today you would earn a total of 42.00 from holding The Kroger Co or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Marfrig Global Foods vs. The Kroger Co
Performance |
| Timeline |
| Marfrig Global Foods |
| The Kroger |
Marfrig Global and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Kroger
The main advantage of trading using opposite Marfrig Global and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| Marfrig Global vs. JBS SA | Marfrig Global vs. Minerva SA | Marfrig Global vs. BRF SA | Marfrig Global vs. Companhia Siderrgica Nacional |
| Kroger vs. BIONTECH SE DRN | Kroger vs. Melco Resorts Entertainment | Kroger vs. Fresenius Medical Care | Kroger vs. Raytheon Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |