Correlation Between Marfrig Global and AMERICAN
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By analyzing existing cross correlation between Marfrig Global Foods and AMERICAN EXPRESS PANY, you can compare the effects of market volatilities on Marfrig Global and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and AMERICAN.
Diversification Opportunities for Marfrig Global and AMERICAN
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and AMERICAN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and AMERICAN EXPRESS PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS PANY 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS PANY has no effect on the direction of Marfrig Global i.e., Marfrig Global and AMERICAN go up and down completely randomly.
Pair Corralation between Marfrig Global and AMERICAN
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 12.96 times more return on investment than AMERICAN. However, Marfrig Global is 12.96 times more volatile than AMERICAN EXPRESS PANY. It trades about 0.16 of its potential returns per unit of risk. AMERICAN EXPRESS PANY is currently generating about 0.02 per unit of risk. If you would invest 189.00 in Marfrig Global Foods on September 14, 2024 and sell it today you would earn a total of 159.00 from holding Marfrig Global Foods or generate 84.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
Marfrig Global Foods vs. AMERICAN EXPRESS PANY
Performance |
| Timeline |
| Marfrig Global Foods |
| AMERICAN EXPRESS PANY |
Marfrig Global and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and AMERICAN
The main advantage of trading using opposite Marfrig Global and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. GameStop Corp | AMERICAN vs. Lifevantage | AMERICAN vs. Vestis | AMERICAN 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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