Correlation Between Marfrig Global and Link Real
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Link Real 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 Link Real 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 Link Real Estate, you can compare the effects of market volatilities on Marfrig Global and Link Real 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 Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Link Real.
Diversification Opportunities for Marfrig Global and Link Real
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and Link is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate 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 Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of Marfrig Global i.e., Marfrig Global and Link Real go up and down completely randomly.
Pair Corralation between Marfrig Global and Link Real
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.22 times more return on investment than Link Real. However, Marfrig Global is 1.22 times more volatile than Link Real Estate. It trades about 0.08 of its potential returns per unit of risk. Link Real Estate is currently generating about 0.0 per unit of risk. If you would invest 258.00 in Marfrig Global Foods on August 25, 2024 and sell it today you would earn a total of 35.00 from holding Marfrig Global Foods or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Marfrig Global Foods vs. Link Real Estate
Performance |
| Timeline |
| Marfrig Global Foods |
| Link Real Estate |
Marfrig Global and Link Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Link Real
The main advantage of trading using opposite Marfrig Global and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Link Real 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 Link Real will offset losses from the drop in Link Real's long position.| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. Aryzta AG PK | Marfrig Global vs. The A2 Milk | Marfrig Global vs. BioAdaptives |
| Link Real vs. Kimco Realty | Link Real vs. Simon Property Group | Link Real vs. Saul Centers | Link Real vs. Kimco Realty |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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