Correlation Between Marfrig Global and Panglobal Brands
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Panglobal Brands 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 Panglobal Brands 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 Panglobal Brands, you can compare the effects of market volatilities on Marfrig Global and Panglobal Brands 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 Panglobal Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Panglobal Brands.
Diversification Opportunities for Marfrig Global and Panglobal Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marfrig and Panglobal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Panglobal Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panglobal Brands 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 Panglobal Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panglobal Brands has no effect on the direction of Marfrig Global i.e., Marfrig Global and Panglobal Brands go up and down completely randomly.
Pair Corralation between Marfrig Global and Panglobal Brands
If you would invest 194.00 in Marfrig Global Foods on September 4, 2024 and sell it today you would earn a total of 111.00 from holding Marfrig Global Foods or generate 57.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.41% |
| Values | Daily Returns |
Marfrig Global Foods vs. Panglobal Brands
Performance |
| Timeline |
| Marfrig Global Foods |
| Panglobal Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marfrig Global and Panglobal Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Panglobal Brands
The main advantage of trading using opposite Marfrig Global and Panglobal Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Panglobal Brands 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 Panglobal Brands will offset losses from the drop in Panglobal Brands' 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 |
| Panglobal Brands vs. PennantPark Floating Rate | Panglobal Brands vs. Supercom | Panglobal Brands vs. IPG Photonics | Panglobal Brands vs. Nextnav Acquisition Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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