Correlation Between Marfrig Global and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on Marfrig Global and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Inflection Point.
Diversification Opportunities for Marfrig Global and Inflection Point
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marfrig and Inflection is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Marfrig Global i.e., Marfrig Global and Inflection Point go up and down completely randomly.
Pair Corralation between Marfrig Global and Inflection Point
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 15.4 times more return on investment than Inflection Point. However, Marfrig Global is 15.4 times more volatile than Inflection Point Acquisition. It trades about 0.06 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.09 per unit of risk. If you would invest 203.00 in Marfrig Global Foods on August 24, 2024 and sell it today you would earn a total of 82.00 from holding Marfrig Global Foods or generate 40.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Inflection Point Acquisition
Performance |
| Timeline |
| Marfrig Global Foods |
| Inflection Point Acq |
Marfrig Global and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Inflection Point
The main advantage of trading using opposite Marfrig Global and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point'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 |
| Inflection Point vs. Aegon NV ADR | Inflection Point vs. NI Holdings | Inflection Point vs. Siriuspoint | Inflection Point vs. Marfrig Global Foods |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |