Correlation Between Marfrig Global and MCCORMICK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Marfrig Global Foods and MCCORMICK INC 325, you can compare the effects of market volatilities on Marfrig Global and MCCORMICK 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 MCCORMICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and MCCORMICK.
Diversification Opportunities for Marfrig Global and MCCORMICK
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and MCCORMICK is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and MCCORMICK INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCCORMICK INC 325 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 MCCORMICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCCORMICK INC 325 has no effect on the direction of Marfrig Global i.e., Marfrig Global and MCCORMICK go up and down completely randomly.
Pair Corralation between Marfrig Global and MCCORMICK
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 5.68 times more return on investment than MCCORMICK. However, Marfrig Global is 5.68 times more volatile than MCCORMICK INC 325. It trades about 0.07 of its potential returns per unit of risk. MCCORMICK INC 325 is currently generating about 0.0 per unit of risk. If you would invest 150.00 in Marfrig Global Foods on September 14, 2024 and sell it today you would earn a total of 198.00 from holding Marfrig Global Foods or generate 132.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.87% |
| Values | Daily Returns |
Marfrig Global Foods vs. MCCORMICK INC 325
Performance |
| Timeline |
| Marfrig Global Foods |
| MCCORMICK INC 325 |
Marfrig Global and MCCORMICK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and MCCORMICK
The main advantage of trading using opposite Marfrig Global and MCCORMICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, MCCORMICK 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 MCCORMICK will offset losses from the drop in MCCORMICK'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 |
| MCCORMICK vs. Playtika Holding Corp | MCCORMICK vs. Evolution Gaming Group | MCCORMICK vs. Kulicke and Soffa | MCCORMICK vs. Jabil Circuit |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |