Correlation Between Marfrig Global and Village Super
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Village Super at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Marfrig Global and Village Super into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfrig Global Foods and Village Super Market, you can compare the effects of market volatilities on Marfrig Global and Village Super 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 Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Village Super.
Diversification Opportunities for Marfrig Global and Village Super
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marfrig and Village is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market 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 Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of Marfrig Global i.e., Marfrig Global and Village Super go up and down completely randomly.
Pair Corralation between Marfrig Global and Village Super
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.74 times more return on investment than Village Super. However, Marfrig Global is 1.74 times more volatile than Village Super Market. It trades about 0.08 of its potential returns per unit of risk. Village Super Market is currently generating about 0.07 per unit of risk. If you would invest 155.00 in Marfrig Global Foods on August 26, 2024 and sell it today you would earn a total of 138.00 from holding Marfrig Global Foods or generate 89.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Village Super Market
Performance |
| Timeline |
| Marfrig Global Foods |
| Village Super Market |
Marfrig Global and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Village Super
The main advantage of trading using opposite Marfrig Global and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. Aryzta AG PK | Marfrig Global vs. The A2 Milk | Marfrig Global vs. BioAdaptives |
| Village Super vs. Hf Foods Group | Village Super vs. Innovative Food Hldg | Village Super vs. Calavo Growers | Village Super vs. The Chefs Warehouse |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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