Correlation Between Marfrig Global and 91324PEG3

Can any of the company-specific risk be diversified away by investing in both Marfrig Global and 91324PEG3 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 91324PEG3 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 UNH 37 15 MAY 27, you can compare the effects of market volatilities on Marfrig Global and 91324PEG3 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 91324PEG3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and 91324PEG3.

Diversification Opportunities for Marfrig Global and 91324PEG3

-0.4

Correlation Coefficient

Marfrig Global  91324PEG3

Very good diversification

The 3 months correlation between Marfrig and 91324PEG3 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and UNH 37 15 MAY 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNH 37 15 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 91324PEG3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNH 37 15 has no effect on the direction of Marfrig Global i.e., Marfrig Global and 91324PEG3 go up and down completely randomly.

Pair Corralation between Marfrig Global and 91324PEG3

Assuming the 90 days horizon Marfrig Global Foods is expected to generate 41.83 times more return on investment than 91324PEG3. However, Marfrig Global is 41.83 times more volatile than UNH 37 15 MAY 27. It trades about 0.07 of its potential returns per unit of risk. UNH 37 15 MAY 27 is currently generating about 0.09 per unit of risk. If you would invest  267.00  in Marfrig Global Foods on December 25, 2024 and sell it today you would earn a total of  43.00  from holding Marfrig Global Foods or generate 16.1% return on investment over 90 days.

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

Marfrig Global Foods  vs.  UNH 37 15 MAY 27

Marfrig Global Foods

Risk-Adjusted Performance

Insignificant

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.

UNH 37 15

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UNH 37 15 MAY 27 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 91324PEG3 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Marfrig Global and 91324PEG3

The main advantage of trading using opposite Marfrig Global and 91324PEG3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, 91324PEG3 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 91324PEG3 will offset losses from the drop in 91324PEG3's long position.

The idea behind Marfrig Global Foods and UNH 37 15 MAY 27 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.