Correlation Between Marfrig Global and FrontView REIT,

Can any of the company-specific risk be diversified away by investing in both Marfrig Global and FrontView REIT, 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 Marfrig Global and FrontView REIT, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marfrig Global Foods and FrontView REIT,, you can compare the effects of market volatilities on Marfrig Global and FrontView REIT, 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 Marfrig Global with a short position of FrontView REIT,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and FrontView REIT,.

Diversification Opportunities for Marfrig Global and FrontView REIT,

0.32

Correlation Coefficient

Marfrig Global  FrontView REIT,

Weak diversification

The 3 months correlation between Marfrig and FrontView is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and FrontView REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FrontView REIT, and Marfrig Global 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 Marfrig Global Foods are associated (or correlated) with FrontView REIT,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FrontView REIT, has no effect on the direction of Marfrig Global i.e., Marfrig Global and FrontView REIT, go up and down completely randomly.

Pair Corralation between Marfrig Global and FrontView REIT,

Assuming the 90 days horizon Marfrig Global Foods is expected to generate 2.13 times more return on investment than FrontView REIT,. However, Marfrig Global is 2.13 times more volatile than FrontView REIT,. It trades about 0.05 of its potential returns per unit of risk. FrontView REIT, is currently generating about -0.04 per unit of risk. If you would invest  164.00  in Marfrig Global Foods on October 4, 2024 and sell it today you would earn a total of  111.00  from holding Marfrig Global Foods or generate 67.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	13.33%
Values	Daily Returns

Marfrig Global Foods  vs.  FrontView REIT,

Marfrig Global Foods

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marfrig Global Foods are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Marfrig Global showed solid returns over the last few months and may actually be approaching a breakup point.

FrontView REIT,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FrontView REIT, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Marfrig Global and FrontView REIT,

The main advantage of trading using opposite Marfrig Global and FrontView REIT, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, FrontView REIT, 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 FrontView REIT, will offset losses from the drop in FrontView REIT,'s long position.

The idea behind Marfrig Global Foods and FrontView REIT, 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.

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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.