Correlation Between Marfrig Global and MUNRE
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By analyzing existing cross correlation between Marfrig Global Foods and MUNRE 5875 23 MAY 42, you can compare the effects of market volatilities on Marfrig Global and MUNRE 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 MUNRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and MUNRE.
Diversification Opportunities for Marfrig Global and MUNRE
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marfrig and MUNRE is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and MUNRE 5875 23 MAY 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUNRE 5875 23 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 MUNRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUNRE 5875 23 has no effect on the direction of Marfrig Global i.e., Marfrig Global and MUNRE go up and down completely randomly.
Pair Corralation between Marfrig Global and MUNRE
Assuming the 90 days horizon Marfrig Global Foods is expected to under-perform the MUNRE. In addition to that, Marfrig Global is 12.18 times more volatile than MUNRE 5875 23 MAY 42. It trades about -0.04 of its total potential returns per unit of risk. MUNRE 5875 23 MAY 42 is currently generating about 0.02 per unit of volatility. If you would invest 10,136 in MUNRE 5875 23 MAY 42 on November 3, 2024 and sell it today you would earn a total of 2.00 from holding MUNRE 5875 23 MAY 42 or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
Marfrig Global Foods vs. MUNRE 5875 23 MAY 42
Performance |
| Timeline |
| Marfrig Global Foods |
| MUNRE 5875 23 |
Marfrig Global and MUNRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and MUNRE
The main advantage of trading using opposite Marfrig Global and MUNRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, MUNRE 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 MUNRE will offset losses from the drop in MUNRE'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 |
| MUNRE vs. TRI Pointe Homes | MUNRE vs. Aris Water Solutions | MUNRE vs. Autohome | MUNRE vs. Orion Office Reit |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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