Correlation Between 23291KAJ4 and Marfrig Global
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By analyzing existing cross correlation between DH EUROPE FINANCE and Marfrig Global Foods, you can compare the effects of market volatilities on 23291KAJ4 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 23291KAJ4 with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23291KAJ4 and Marfrig Global.
Diversification Opportunities for 23291KAJ4 and Marfrig Global
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 23291KAJ4 and Marfrig is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding DH EUROPE FINANCE 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 23291KAJ4 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 DH EUROPE FINANCE 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 23291KAJ4 i.e., 23291KAJ4 and Marfrig Global go up and down completely randomly.
Pair Corralation between 23291KAJ4 and Marfrig Global
Assuming the 90 days trading horizon DH EUROPE FINANCE is expected to under-perform the Marfrig Global. But the bond apears to be less risky and, when comparing its historical volatility, DH EUROPE FINANCE is 4.86 times less risky than Marfrig Global. The bond trades about -0.08 of its potential returns per unit of risk. The Marfrig Global Foods is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 249.00 in Marfrig Global Foods on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Marfrig Global Foods or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
DH EUROPE FINANCE vs. Marfrig Global Foods
Performance |
| Timeline |
| DH EUROPE FINANCE |
| Marfrig Global Foods |
23291KAJ4 and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 23291KAJ4 and Marfrig Global
The main advantage of trading using opposite 23291KAJ4 and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23291KAJ4 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.| 23291KAJ4 vs. Marfrig Global Foods | 23291KAJ4 vs. Datadog | 23291KAJ4 vs. Tyson Foods | 23291KAJ4 vs. Kaltura |
| Marfrig Global vs. BRF SA ADR | Marfrig Global vs. Pilgrims Pride Corp | Marfrig Global vs. John B Sanfilippo | Marfrig Global vs. Seneca Foods Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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