Correlation Between Marfrig Global and Lifestore Financial
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Lifestore Financial 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 Lifestore Financial 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 Lifestore Financial Group, you can compare the effects of market volatilities on Marfrig Global and Lifestore Financial 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 Lifestore Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Lifestore Financial.
Diversification Opportunities for Marfrig Global and Lifestore Financial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marfrig and Lifestore is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Lifestore Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestore Financial 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 Lifestore Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestore Financial has no effect on the direction of Marfrig Global i.e., Marfrig Global and Lifestore Financial go up and down completely randomly.
Pair Corralation between Marfrig Global and Lifestore Financial
If you would invest 273.00 in Marfrig Global Foods on September 5, 2024 and sell it today you would earn a total of 35.00 from holding Marfrig Global Foods or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Marfrig Global Foods vs. Lifestore Financial Group
Performance |
| Timeline |
| Marfrig Global Foods |
| Lifestore Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marfrig Global and Lifestore Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Lifestore Financial
The main advantage of trading using opposite Marfrig Global and Lifestore Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Lifestore Financial 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 Lifestore Financial will offset losses from the drop in Lifestore Financial'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 |
| Lifestore Financial vs. NETGEAR | Lifestore Financial vs. Marfrig Global Foods | Lifestore Financial vs. Bridgford Foods | Lifestore Financial vs. Uber Technologies |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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