Correlation Between Marfrig Global and TG Venture
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and TG Venture 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 TG Venture 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 TG Venture Acquisition, you can compare the effects of market volatilities on Marfrig Global and TG Venture 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 TG Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and TG Venture.
Diversification Opportunities for Marfrig Global and TG Venture
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marfrig and TGVCU is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and TG Venture Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Venture Acquisition 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 TG Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Venture Acquisition has no effect on the direction of Marfrig Global i.e., Marfrig Global and TG Venture go up and down completely randomly.
Pair Corralation between Marfrig Global and TG Venture
If you would invest 210.00 in Marfrig Global Foods on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Marfrig Global Foods or generate 46.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Marfrig Global Foods vs. TG Venture Acquisition
Performance |
| Timeline |
| Marfrig Global Foods |
| TG Venture Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marfrig Global and TG Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and TG Venture
The main advantage of trading using opposite Marfrig Global and TG Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, TG Venture 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 TG Venture will offset losses from the drop in TG Venture'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 |
| TG Venture vs. National Beverage Corp | TG Venture vs. Mediag3 | TG Venture vs. SunOpta | TG Venture 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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