Correlation Between Marfrig Global and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and CAVA Group, 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 CAVA Group, 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 CAVA Group,, you can compare the effects of market volatilities on Marfrig Global and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and CAVA Group,.
Diversification Opportunities for Marfrig Global and CAVA Group,
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfrig and CAVA is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Marfrig Global i.e., Marfrig Global and CAVA Group, go up and down completely randomly.
Pair Corralation between Marfrig Global and CAVA Group,
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.34 times more return on investment than CAVA Group,. However, Marfrig Global is 1.34 times more volatile than CAVA Group,. It trades about 0.26 of its potential returns per unit of risk. CAVA Group, is currently generating about 0.11 per unit of risk. If you would invest 260.00 in Marfrig Global Foods on August 31, 2024 and sell it today you would earn a total of 50.00 from holding Marfrig Global Foods or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. CAVA Group,
Performance |
| Timeline |
| Marfrig Global Foods |
| CAVA Group, |
Marfrig Global and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and CAVA Group,
The main advantage of trading using opposite Marfrig Global and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'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 |
| CAVA Group, vs. Wingstop | CAVA Group, vs. RLJ Lodging Trust | CAVA Group, vs. Aquagold International | CAVA Group, vs. Stepstone Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |