Correlation Between Marfrig Global and Trugolf
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Trugolf 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 Trugolf 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 Trugolf, you can compare the effects of market volatilities on Marfrig Global and Trugolf 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 Trugolf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Trugolf.
Diversification Opportunities for Marfrig Global and Trugolf
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and Trugolf is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Trugolf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trugolf 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 Trugolf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trugolf has no effect on the direction of Marfrig Global i.e., Marfrig Global and Trugolf go up and down completely randomly.
Pair Corralation between Marfrig Global and Trugolf
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 0.4 times more return on investment than Trugolf. However, Marfrig Global Foods is 2.52 times less risky than Trugolf. It trades about 0.26 of its potential returns per unit of risk. Trugolf is currently generating about -0.08 per unit of risk. If you would invest 255.00 in Marfrig Global Foods on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Marfrig Global Foods or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marfrig Global Foods vs. Trugolf
Performance |
| Timeline |
| Marfrig Global Foods |
| Trugolf |
Marfrig Global and Trugolf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Trugolf
The main advantage of trading using opposite Marfrig Global and Trugolf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Trugolf 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 Trugolf will offset losses from the drop in Trugolf's long position.| Marfrig Global vs. Darling Ingredients | Marfrig Global vs. Paranovus Entertainment Technology | Marfrig Global vs. ABIVAX Socit Anonyme | Marfrig Global vs. Pinnacle Sherman Multi Strategy |
| Trugolf vs. Marfrig Global Foods | Trugolf vs. Hf Foods Group | Trugolf vs. Ross Stores | Trugolf vs. Tandy Leather Factory |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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