Correlation Between Marfrig Global and Pingtan Marine
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Pingtan Marine 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 Pingtan Marine 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 Pingtan Marine Enterprise, you can compare the effects of market volatilities on Marfrig Global and Pingtan Marine 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 Pingtan Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Pingtan Marine.
Diversification Opportunities for Marfrig Global and Pingtan Marine
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marfrig and Pingtan is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Pingtan Marine Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pingtan Marine Enterprise 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 Pingtan Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pingtan Marine Enterprise has no effect on the direction of Marfrig Global i.e., Marfrig Global and Pingtan Marine go up and down completely randomly.
Pair Corralation between Marfrig Global and Pingtan Marine
If you would invest 199.00 in Marfrig Global Foods on September 5, 2024 and sell it today you would earn a total of 109.00 from holding Marfrig Global Foods or generate 54.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.19% |
| Values | Daily Returns |
Marfrig Global Foods vs. Pingtan Marine Enterprise
Performance |
| Timeline |
| Marfrig Global Foods |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marfrig Global and Pingtan Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Pingtan Marine
The main advantage of trading using opposite Marfrig Global and Pingtan Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Pingtan Marine 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 Pingtan Marine will offset losses from the drop in Pingtan Marine'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 |
| Pingtan Marine vs. Uranium Energy Corp | Pingtan Marine vs. Marfrig Global Foods | Pingtan Marine vs. FitLife Brands, Common | Pingtan Marine vs. Tyson 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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