Correlation Between Marfrig Global and ENSTAR
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By analyzing existing cross correlation between Marfrig Global Foods and ENSTAR FIN LLC, you can compare the effects of market volatilities on Marfrig Global and ENSTAR 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 ENSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and ENSTAR.
Diversification Opportunities for Marfrig Global and ENSTAR
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marfrig and ENSTAR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and ENSTAR FIN LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSTAR FIN LLC 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 ENSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSTAR FIN LLC has no effect on the direction of Marfrig Global i.e., Marfrig Global and ENSTAR go up and down completely randomly.
Pair Corralation between Marfrig Global and ENSTAR
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.07 times more return on investment than ENSTAR. However, Marfrig Global is 1.07 times more volatile than ENSTAR FIN LLC. It trades about 0.28 of its potential returns per unit of risk. ENSTAR FIN LLC is currently generating about -0.3 per unit of risk. If you would invest 255.00 in Marfrig Global Foods on August 28, 2024 and sell it today you would earn a total of 53.00 from holding Marfrig Global Foods or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Marfrig Global Foods vs. ENSTAR FIN LLC
Performance |
| Timeline |
| Marfrig Global Foods |
| ENSTAR FIN LLC |
Marfrig Global and ENSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and ENSTAR
The main advantage of trading using opposite Marfrig Global and ENSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, ENSTAR 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 ENSTAR will offset losses from the drop in ENSTAR's long position.| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. The A2 Milk | Marfrig Global vs. BioAdaptives | Marfrig Global vs. General Mills |
| ENSTAR vs. Pure Cycle | ENSTAR vs. CenterPoint Energy | ENSTAR vs. Marfrig Global Foods | ENSTAR vs. Atmos Energy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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