Correlation Between Meiwu Technology and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology 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 Meiwu Technology and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiwu Technology Co and Marfrig Global Foods, you can compare the effects of market volatilities on Meiwu Technology 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 Meiwu Technology with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Marfrig Global.
Diversification Opportunities for Meiwu Technology and Marfrig Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meiwu and Marfrig is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co 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 Meiwu Technology 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 Meiwu Technology Co 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 Meiwu Technology i.e., Meiwu Technology and Marfrig Global go up and down completely randomly.
Pair Corralation between Meiwu Technology and Marfrig Global
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Marfrig Global. In addition to that, Meiwu Technology is 2.82 times more volatile than Marfrig Global Foods. It trades about -0.03 of its total potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.07 per unit of volatility. If you would invest 125.00 in Marfrig Global Foods on September 5, 2024 and sell it today you would earn a total of 183.00 from holding Marfrig Global Foods or generate 146.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Meiwu Technology Co vs. Marfrig Global Foods
Performance |
| Timeline |
| Meiwu Technology |
| Marfrig Global Foods |
Meiwu Technology and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Marfrig Global
The main advantage of trading using opposite Meiwu Technology and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology 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.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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