Correlation Between Marfrig Global and National Beverage
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and National Beverage 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 National Beverage 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 National Beverage Corp, you can compare the effects of market volatilities on Marfrig Global and National Beverage 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 National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and National Beverage.
Diversification Opportunities for Marfrig Global and National Beverage
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfrig and National is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Marfrig Global i.e., Marfrig Global and National Beverage go up and down completely randomly.
Pair Corralation between Marfrig Global and National Beverage
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 2.46 times more return on investment than National Beverage. However, Marfrig Global is 2.46 times more volatile than National Beverage Corp. It trades about 0.24 of its potential returns per unit of risk. National Beverage Corp is currently generating about 0.16 per unit of risk. If you would invest 244.00 in Marfrig Global Foods on August 24, 2024 and sell it today you would earn a total of 41.00 from holding Marfrig Global Foods or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marfrig Global Foods vs. National Beverage Corp
Performance |
| Timeline |
| Marfrig Global Foods |
| National Beverage Corp |
Marfrig Global and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and National Beverage
The main advantage of trading using opposite Marfrig Global and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. Avi Ltd ADR | Marfrig Global vs. Aryzta AG PK | Marfrig Global vs. The A2 Milk |
| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world |