Correlation Between Marfrig Global and ESH Acquisition
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and ESH Acquisition 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 ESH Acquisition 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 ESH Acquisition Corp, you can compare the effects of market volatilities on Marfrig Global and ESH Acquisition 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 ESH Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and ESH Acquisition.
Diversification Opportunities for Marfrig Global and ESH Acquisition
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfrig and ESH is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and ESH Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESH Acquisition Corp 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 ESH Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESH Acquisition Corp has no effect on the direction of Marfrig Global i.e., Marfrig Global and ESH Acquisition go up and down completely randomly.
Pair Corralation between Marfrig Global and ESH Acquisition
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 34.84 times more return on investment than ESH Acquisition. However, Marfrig Global is 34.84 times more volatile than ESH Acquisition Corp. It trades about 0.28 of its potential returns per unit of risk. ESH Acquisition Corp is currently generating about 0.09 per unit of risk. If you would invest 258.00 in Marfrig Global Foods on August 30, 2024 and sell it today you would earn a total of 54.00 from holding Marfrig Global Foods or generate 20.93% 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. ESH Acquisition Corp
Performance |
| Timeline |
| Marfrig Global Foods |
| ESH Acquisition Corp |
Marfrig Global and ESH Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and ESH Acquisition
The main advantage of trading using opposite Marfrig Global and ESH Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, ESH Acquisition 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 ESH Acquisition will offset losses from the drop in ESH Acquisition's long position.| Marfrig Global vs. Darling Ingredients | Marfrig Global vs. Paranovus Entertainment Technology | Marfrig Global vs. ABIVAX Socit Anonyme | Marfrig Global vs. Pinnacle Sherman Multi Strategy |
| ESH Acquisition vs. Grocery Outlet Holding | ESH Acquisition vs. Marfrig Global Foods | ESH Acquisition vs. NH Foods Ltd | ESH Acquisition vs. Amgen Inc |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |