Correlation Between Marfrig Global and Aperture Health
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Aperture Health 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 Aperture Health 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 Aperture Health, you can compare the effects of market volatilities on Marfrig Global and Aperture Health 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 Aperture Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Aperture Health.
Diversification Opportunities for Marfrig Global and Aperture Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marfrig and Aperture is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Aperture Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Health 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 Aperture Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Health has no effect on the direction of Marfrig Global i.e., Marfrig Global and Aperture Health go up and down completely randomly.
Pair Corralation between Marfrig Global and Aperture Health
If you would invest 187.00 in Marfrig Global Foods on November 3, 2024 and sell it today you would earn a total of 78.00 from holding Marfrig Global Foods or generate 41.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Marfrig Global Foods vs. Aperture Health
Performance |
| Timeline |
| Marfrig Global Foods |
| Aperture Health |
Marfrig Global and Aperture Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Aperture Health
The main advantage of trading using opposite Marfrig Global and Aperture Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Aperture Health 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 Aperture Health will offset losses from the drop in Aperture Health'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 |
| Aperture Health vs. Martin Marietta Materials | Aperture Health vs. CRH PLC ADR | Aperture Health vs. Eagle Materials | Aperture Health vs. Summit Materials |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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