Correlation Between 437076BX9 and Marfrig Global
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By analyzing existing cross correlation between HOME DEPOT INC and Marfrig Global Foods, you can compare the effects of market volatilities on 437076BX9 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 437076BX9 with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 437076BX9 and Marfrig Global.
Diversification Opportunities for 437076BX9 and Marfrig Global
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 437076BX9 and Marfrig is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding HOME DEPOT INC 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 437076BX9 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 HOME DEPOT INC 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 437076BX9 i.e., 437076BX9 and Marfrig Global go up and down completely randomly.
Pair Corralation between 437076BX9 and Marfrig Global
Assuming the 90 days trading horizon 437076BX9 is expected to generate 7.31 times less return on investment than Marfrig Global. But when comparing it to its historical volatility, HOME DEPOT INC is 2.06 times less risky than Marfrig Global. It trades about 0.05 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Marfrig Global Foods on September 12, 2024 and sell it today you would earn a total of 84.00 from holding Marfrig Global Foods or generate 34.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HOME DEPOT INC vs. Marfrig Global Foods
Performance |
| Timeline |
| HOME DEPOT INC |
| Marfrig Global Foods |
437076BX9 and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 437076BX9 and Marfrig Global
The main advantage of trading using opposite 437076BX9 and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 437076BX9 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.| 437076BX9 vs. EMCOR Group | 437076BX9 vs. Guangdong Investment Limited | 437076BX9 vs. Newpark Resources | 437076BX9 vs. Hurco Companies |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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