Correlation Between Marfrig Global and Euronav NV
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Euronav NV 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 Euronav NV 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 Euronav NV, you can compare the effects of market volatilities on Marfrig Global and Euronav NV 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 Euronav NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Euronav NV.
Diversification Opportunities for Marfrig Global and Euronav NV
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marfrig and Euronav is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Euronav NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronav NV 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 Euronav NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronav NV has no effect on the direction of Marfrig Global i.e., Marfrig Global and Euronav NV go up and down completely randomly.
Pair Corralation between Marfrig Global and Euronav NV
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.39 times more return on investment than Euronav NV. However, Marfrig Global is 1.39 times more volatile than Euronav NV. It trades about 0.18 of its potential returns per unit of risk. Euronav NV is currently generating about -0.34 per unit of risk. If you would invest 243.00 in Marfrig Global Foods on September 12, 2024 and sell it today you would earn a total of 84.00 from holding Marfrig Global Foods or generate 34.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Marfrig Global Foods vs. Euronav NV
Performance |
| Timeline |
| Marfrig Global Foods |
| Euronav NV |
Marfrig Global and Euronav NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Euronav NV
The main advantage of trading using opposite Marfrig Global and Euronav NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Euronav NV 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 Euronav NV will offset losses from the drop in Euronav NV's long position.| Marfrig Global vs. BRF SA ADR | Marfrig Global vs. Pilgrims Pride Corp | Marfrig Global vs. John B Sanfilippo | Marfrig Global vs. Seneca Foods Corp |
| Euronav NV vs. Playtech plc | Euronav NV vs. Sonos Inc | Euronav NV vs. Compania Cervecerias Unidas | Euronav NV vs. Diageo PLC ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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