Correlation Between Big Rock and BRF SA
Can any of the company-specific risk be diversified away by investing in both Big Rock and BRF SA 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 Big Rock and BRF SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Rock Brewery and BRF SA ADR, you can compare the effects of market volatilities on Big Rock and BRF SA 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 Big Rock with a short position of BRF SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Rock and BRF SA.
Diversification Opportunities for Big Rock and BRF SA
Pay attention - limited upside
The 3 months correlation between Big and BRF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Big Rock Brewery and BRF SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRF SA ADR and Big Rock 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 Big Rock Brewery are associated (or correlated) with BRF SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRF SA ADR has no effect on the direction of Big Rock i.e., Big Rock and BRF SA go up and down completely randomly.
Pair Corralation between Big Rock and BRF SA
If you would invest (100.00) in Big Rock Brewery on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Big Rock Brewery or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Big Rock Brewery vs. BRF SA ADR
Performance |
Timeline |
Big Rock Brewery |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BRF SA ADR |
Big Rock and BRF SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Big Rock and BRF SA
The main advantage of trading using opposite Big Rock and BRF SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Rock position performs unexpectedly, BRF SA 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 BRF SA will offset losses from the drop in BRF SA's long position.Big Rock vs. Molson Coors Brewing | Big Rock vs. Fomento Economico Mexicano | Big Rock vs. Compania Cervecerias Unidas | Big Rock vs. Anheuser Busch Inbev |
BRF SA vs. Marfrig Global Foods | BRF SA vs. Pilgrims Pride Corp | BRF SA vs. John B Sanfilippo | BRF SA 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Stocks Directory Find actively traded stocks across global markets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Money Managers Screen money managers from public funds and ETFs managed around the world |