Correlation Between STAG Industrial, and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both STAG Industrial, 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 STAG Industrial, and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial, and Marfrig Global Foods, you can compare the effects of market volatilities on STAG Industrial, 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 STAG Industrial, with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial, and Marfrig Global.
Diversification Opportunities for STAG Industrial, and Marfrig Global
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between STAG and Marfrig is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial, 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 STAG Industrial, 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 STAG Industrial, 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 STAG Industrial, i.e., STAG Industrial, and Marfrig Global go up and down completely randomly.
Pair Corralation between STAG Industrial, and Marfrig Global
Assuming the 90 days trading horizon STAG Industrial, is expected to generate 0.79 times more return on investment than Marfrig Global. However, STAG Industrial, is 1.27 times less risky than Marfrig Global. It trades about -0.11 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about -0.11 per unit of risk. If you would invest 4,144 in STAG Industrial, on November 4, 2024 and sell it today you would lose (177.00) from holding STAG Industrial, or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STAG Industrial, vs. Marfrig Global Foods
Performance |
| Timeline |
| STAG Industrial, |
| Marfrig Global Foods |
STAG Industrial, and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAG Industrial, and Marfrig Global
The main advantage of trading using opposite STAG Industrial, and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial, 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.| STAG Industrial, vs. Taiwan Semiconductor Manufacturing | STAG Industrial, vs. Apple Inc | STAG Industrial, vs. Alibaba Group Holding | STAG Industrial, vs. Microsoft |
| Marfrig Global vs. JBS SA | Marfrig Global vs. Minerva SA | Marfrig Global vs. BRF SA | Marfrig Global vs. Companhia Siderrgica Nacional |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |