Correlation Between Marfrig Global and Anterix
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Anterix 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 Anterix 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 Anterix, you can compare the effects of market volatilities on Marfrig Global and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Anterix.
Diversification Opportunities for Marfrig Global and Anterix
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marfrig and Anterix is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Marfrig Global i.e., Marfrig Global and Anterix go up and down completely randomly.
Pair Corralation between Marfrig Global and Anterix
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.43 times more return on investment than Anterix. However, Marfrig Global is 1.43 times more volatile than Anterix. It trades about 0.09 of its potential returns per unit of risk. Anterix is currently generating about -0.01 per unit of risk. If you would invest 201.00 in Marfrig Global Foods on September 1, 2024 and sell it today you would earn a total of 109.00 from holding Marfrig Global Foods or generate 54.23% 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. Anterix
Performance |
| Timeline |
| Marfrig Global Foods |
| Anterix |
Marfrig Global and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Anterix
The main advantage of trading using opposite Marfrig Global and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Marfrig Global vs. The A2 Milk | Marfrig Global vs. Altavoz Entertainment | Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. General Mills |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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