Correlation Between Marfrig Global and Genus Plc
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Genus Plc 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 Genus Plc 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 Genus plc, you can compare the effects of market volatilities on Marfrig Global and Genus Plc 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 Genus Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Genus Plc.
Diversification Opportunities for Marfrig Global and Genus Plc
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and Genus is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Genus plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus plc 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 Genus Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus plc has no effect on the direction of Marfrig Global i.e., Marfrig Global and Genus Plc go up and down completely randomly.
Pair Corralation between Marfrig Global and Genus Plc
Assuming the 90 days horizon Marfrig Global Foods is expected to under-perform the Genus Plc. In addition to that, Marfrig Global is 37.91 times more volatile than Genus plc. It trades about -0.15 of its total potential returns per unit of risk. Genus plc is currently generating about 0.22 per unit of volatility. If you would invest 2,101 in Genus plc on October 21, 2024 and sell it today you would earn a total of 7.00 from holding Genus plc or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Marfrig Global Foods vs. Genus plc
Performance |
| Timeline |
| Marfrig Global Foods |
| Genus plc |
Marfrig Global and Genus Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Genus Plc
The main advantage of trading using opposite Marfrig Global and Genus Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Genus Plc 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 Genus Plc will offset losses from the drop in Genus Plc'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 |
| Genus Plc vs. Anavex Life Sciences | Genus Plc vs. Annovis Bio | Genus Plc vs. Iovance Biotherapeutics | Genus Plc vs. Axsome Therapeutics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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