Correlation Between Valens and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Valens 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 Valens and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valens and Marfrig Global Foods, you can compare the effects of market volatilities on Valens 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 Valens with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valens and Marfrig Global.
Diversification Opportunities for Valens and Marfrig Global
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valens and Marfrig is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Valens 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 Valens 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 Valens 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 Valens i.e., Valens and Marfrig Global go up and down completely randomly.
Pair Corralation between Valens and Marfrig Global
Considering the 90-day investment horizon Valens is expected to under-perform the Marfrig Global. In addition to that, Valens is 1.26 times more volatile than Marfrig Global Foods. It trades about -0.19 of its total potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.06 per unit of volatility. If you would invest 258.00 in Marfrig Global Foods on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Marfrig Global Foods or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valens vs. Marfrig Global Foods
Performance |
| Timeline |
| Valens |
| Marfrig Global Foods |
Valens and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valens and Marfrig Global
The main advantage of trading using opposite Valens and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valens 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.| Valens vs. Wolfspeed | Valens vs. GSI Technology | Valens vs. Lattice Semiconductor | Valens vs. ON Semiconductor |
| Marfrig Global vs. Toyo Suisan Kaisha | Marfrig Global vs. Bank Mandiri Persero | Marfrig Global vs. Astra International Tbk | Marfrig Global vs. United Tractors Tbk |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |