Correlation Between BRF SA and General Mills
Can any of the company-specific risk be diversified away by investing in both BRF SA and General Mills 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 BRF SA and General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRF SA and General Mills, you can compare the effects of market volatilities on BRF SA and General Mills 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 BRF SA with a short position of General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRF SA and General Mills.
Diversification Opportunities for BRF SA and General Mills
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRF and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRF SA and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills and BRF SA 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 BRF SA are associated (or correlated) with General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of BRF SA i.e., BRF SA and General Mills go up and down completely randomly.
Pair Corralation between BRF SA and General Mills
If you would invest 0.00 in BRF SA on October 29, 2024 and sell it today you would earn a total of 0.00 from holding BRF SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.22% |
| Values | Daily Returns |
BRF SA vs. General Mills
Performance |
| Timeline |
| BRF SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| General Mills |
BRF SA and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRF SA and General Mills
The main advantage of trading using opposite BRF SA and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRF SA position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| BRF SA vs. Performance Food Group | BRF SA vs. GWILLI FOOD | BRF SA vs. Tyson Foods | BRF SA vs. TreeHouse Foods |
| General Mills vs. ANTA SPORTS PRODUCT | General Mills vs. Tencent Music Entertainment | General Mills vs. Amkor Technology | General Mills vs. VARIOUS EATERIES LS |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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