Correlation Between Marfrig Global and 78490FMG1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Marfrig Global Foods and US78490FMG18, you can compare the effects of market volatilities on Marfrig Global and 78490FMG1 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 78490FMG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and 78490FMG1.
Diversification Opportunities for Marfrig Global and 78490FMG1
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfrig and 78490FMG1 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and US78490FMG18 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US78490FMG18 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 78490FMG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US78490FMG18 has no effect on the direction of Marfrig Global i.e., Marfrig Global and 78490FMG1 go up and down completely randomly.
Pair Corralation between Marfrig Global and 78490FMG1
Assuming the 90 days horizon Marfrig Global is expected to generate 1.17 times less return on investment than 78490FMG1. But when comparing it to its historical volatility, Marfrig Global Foods is 1.06 times less risky than 78490FMG1. It trades about 0.05 of its potential returns per unit of risk. US78490FMG18 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,850 in US78490FMG18 on October 23, 2024 and sell it today you would earn a total of 1,240 from holding US78490FMG18 or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 26.92% |
| Values | Daily Returns |
Marfrig Global Foods vs. US78490FMG18
Performance |
| Timeline |
| Marfrig Global Foods |
| US78490FMG18 |
Marfrig Global and 78490FMG1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and 78490FMG1
The main advantage of trading using opposite Marfrig Global and 78490FMG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, 78490FMG1 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 78490FMG1 will offset losses from the drop in 78490FMG1'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 |
| 78490FMG1 vs. AEP TEX INC | 78490FMG1 vs. US BANK NATIONAL | 78490FMG1 vs. Cheniere Energy | 78490FMG1 vs. Targa Resources |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |