Correlation Between Marfrig Global and First Republic
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on Marfrig Global and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and First Republic.
Diversification Opportunities for Marfrig Global and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marfrig and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Marfrig Global i.e., Marfrig Global and First Republic go up and down completely randomly.
Pair Corralation between Marfrig Global and First Republic
If you would invest (100.00) in First Republic Bank on November 27, 2024 and sell it today you would earn a total of 100.00 from holding First Republic Bank or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. First Republic Bank
Performance |
| Timeline |
| Marfrig Global Foods |
| First Republic Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Marfrig Global and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and First Republic
The main advantage of trading using opposite Marfrig Global and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic'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 |
| First Republic vs. Ardelyx | First Republic vs. The Joint Corp | First Republic vs. Nasdaq Inc | First Republic vs. Acumen Pharmaceuticals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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