Correlation Between NH Foods and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both NH Foods and Marfrig Global 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 NH Foods and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Marfrig Global Foods, you can compare the effects of market volatilities on NH Foods and Marfrig Global 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 NH Foods with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Marfrig Global.
Diversification Opportunities for NH Foods and Marfrig Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Marfrig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods and NH Foods 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 NH Foods Ltd are associated (or correlated) with Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of NH Foods i.e., NH Foods and Marfrig Global go up and down completely randomly.
Pair Corralation between NH Foods and Marfrig Global
If you would invest 255.00 in Marfrig Global Foods on August 27, 2024 and sell it today you would earn a total of 53.00 from holding Marfrig Global Foods or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Marfrig Global Foods
Performance |
| Timeline |
| NH Foods |
| Marfrig Global Foods |
NH Foods and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Marfrig Global
The main advantage of trading using opposite NH Foods and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.| NH Foods vs. Artisan Consumer Goods | NH Foods vs. The A2 Milk | NH Foods vs. BioAdaptives | NH Foods vs. General Mills |
| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. The A2 Milk | Marfrig Global vs. BioAdaptives | Marfrig Global vs. General Mills |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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