Correlation Between HPX Corp and Marfrig Global

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Can any of the company-specific risk be diversified away by investing in both HPX Corp 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 HPX Corp and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HPX Corp and Marfrig Global Foods, you can compare the effects of market volatilities on HPX Corp 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 HPX Corp with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HPX Corp and Marfrig Global.

Diversification Opportunities for HPX Corp and Marfrig Global

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between HPX and Marfrig is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding HPX Corp 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 HPX Corp 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 HPX Corp 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 HPX Corp i.e., HPX Corp and Marfrig Global go up and down completely randomly.

Pair Corralation between HPX Corp and Marfrig Global

If you would invest  1,725  in HPX Corp on September 25, 2024 and sell it today you would earn a total of  0.00  from holding HPX Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy5.0%
ValuesDaily Returns

HPX Corp  vs.  Marfrig Global Foods

 Performance 
       Timeline  
HPX Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HPX Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, HPX Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Marfrig Global Foods 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Marfrig Global Foods are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Marfrig Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

HPX Corp and Marfrig Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HPX Corp and Marfrig Global

The main advantage of trading using opposite HPX Corp and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HPX Corp 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.
The idea behind HPX Corp and Marfrig Global Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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