Correlation Between Marfrig Global and Entegris
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Entegris 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 Entegris 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 Entegris, you can compare the effects of market volatilities on Marfrig Global and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Entegris.
Diversification Opportunities for Marfrig Global and Entegris
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marfrig and Entegris is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Marfrig Global i.e., Marfrig Global and Entegris go up and down completely randomly.
Pair Corralation between Marfrig Global and Entegris
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.58 times more return on investment than Entegris. However, Marfrig Global is 1.58 times more volatile than Entegris. It trades about 0.05 of its potential returns per unit of risk. Entegris is currently generating about 0.06 per unit of risk. If you would invest 275.00 in Marfrig Global Foods on November 1, 2024 and sell it today you would earn a total of 6.00 from holding Marfrig Global Foods or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Entegris
Performance |
| Timeline |
| Marfrig Global Foods |
| Entegris |
Marfrig Global and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Entegris
The main advantage of trading using opposite Marfrig Global and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' 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 |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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