Correlation Between SEALSQ Corp and Marfrig Global

Can any of the company-specific risk be diversified away by investing in both SEALSQ 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 SEALSQ 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 SEALSQ Corp and Marfrig Global Foods, you can compare the effects of market volatilities on SEALSQ 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 SEALSQ Corp with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALSQ Corp and Marfrig Global.

Diversification Opportunities for SEALSQ Corp and Marfrig Global

-0.06

Correlation Coefficient

SEALSQ Corp  Marfrig Global

Good diversification

The 3 months correlation between SEALSQ and Marfrig is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SEALSQ 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 SEALSQ 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 SEALSQ 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 SEALSQ Corp i.e., SEALSQ Corp and Marfrig Global go up and down completely randomly.

Pair Corralation between SEALSQ Corp and Marfrig Global

Given the investment horizon of 90 days SEALSQ Corp is expected to under-perform the Marfrig Global. In addition to that, SEALSQ Corp is 2.36 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 0.16 per unit of volatility. If you would invest  236.00  in Marfrig Global Foods on August 31, 2024 and sell it today you would earn a total of  74.00  from holding Marfrig Global Foods or generate 31.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SEALSQ Corp  vs.  Marfrig Global Foods

SEALSQ Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEALSQ Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Marfrig Global Foods

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marfrig Global Foods are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Marfrig Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEALSQ Corp and Marfrig Global

The main advantage of trading using opposite SEALSQ Corp and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALSQ 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 SEALSQ 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.