Correlation Between Marfrig Global and OceanPact Servios
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and OceanPact Servios 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 OceanPact Servios 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 OceanPact Servios Martimos, you can compare the effects of market volatilities on Marfrig Global and OceanPact Servios 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 OceanPact Servios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and OceanPact Servios.
Diversification Opportunities for Marfrig Global and OceanPact Servios
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marfrig and OceanPact is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and OceanPact Servios Martimos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanPact Servios 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 OceanPact Servios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanPact Servios has no effect on the direction of Marfrig Global i.e., Marfrig Global and OceanPact Servios go up and down completely randomly.
Pair Corralation between Marfrig Global and OceanPact Servios
Assuming the 90 days trading horizon Marfrig Global Foods is expected to generate 1.09 times more return on investment than OceanPact Servios. However, Marfrig Global is 1.09 times more volatile than OceanPact Servios Martimos. It trades about 0.13 of its potential returns per unit of risk. OceanPact Servios Martimos is currently generating about -0.08 per unit of risk. If you would invest 1,171 in Marfrig Global Foods on November 2, 2024 and sell it today you would earn a total of 421.00 from holding Marfrig Global Foods or generate 35.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. OceanPact Servios Martimos
Performance |
| Timeline |
| Marfrig Global Foods |
| OceanPact Servios |
Marfrig Global and OceanPact Servios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and OceanPact Servios
The main advantage of trading using opposite Marfrig Global and OceanPact Servios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, OceanPact Servios 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 OceanPact Servios will offset losses from the drop in OceanPact Servios' long position.| Marfrig Global vs. JBS SA | Marfrig Global vs. Minerva SA | Marfrig Global vs. BRF SA | Marfrig Global vs. Companhia Siderrgica Nacional |
| OceanPact Servios vs. Hidrovias do Brasil | OceanPact Servios vs. Enjoei SA | OceanPact Servios vs. MPM Corpreos SA | OceanPact Servios vs. Intelbras SA |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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