Correlation Between Marfrig Global and NWIDE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Marfrig Global Foods and NWIDE 4 14 SEP 26, you can compare the effects of market volatilities on Marfrig Global and NWIDE 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 NWIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and NWIDE.
Diversification Opportunities for Marfrig Global and NWIDE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfrig and NWIDE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and NWIDE 4 14 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWIDE 4 14 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 NWIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWIDE 4 14 has no effect on the direction of Marfrig Global i.e., Marfrig Global and NWIDE go up and down completely randomly.
Pair Corralation between Marfrig Global and NWIDE
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 3.93 times more return on investment than NWIDE. However, Marfrig Global is 3.93 times more volatile than NWIDE 4 14 SEP 26. It trades about 0.1 of its potential returns per unit of risk. NWIDE 4 14 SEP 26 is currently generating about 0.02 per unit of risk. If you would invest 142.00 in Marfrig Global Foods on September 12, 2024 and sell it today you would earn a total of 185.00 from holding Marfrig Global Foods or generate 130.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 20.61% |
| Values | Daily Returns |
Marfrig Global Foods vs. NWIDE 4 14 SEP 26
Performance |
| Timeline |
| Marfrig Global Foods |
| NWIDE 4 14 |
Marfrig Global and NWIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and NWIDE
The main advantage of trading using opposite Marfrig Global and NWIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, NWIDE 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 NWIDE will offset losses from the drop in NWIDE'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |