Correlation Between BRF SA and Grid Dynamics
Can any of the company-specific risk be diversified away by investing in both BRF SA and Grid Dynamics 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 BRF SA and Grid Dynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRF SA ADR and Grid Dynamics Holdings, you can compare the effects of market volatilities on BRF SA and Grid Dynamics 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 BRF SA with a short position of Grid Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRF SA and Grid Dynamics.
Diversification Opportunities for BRF SA and Grid Dynamics
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BRF and Grid is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BRF SA ADR and Grid Dynamics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grid Dynamics Holdings and BRF SA 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 BRF SA ADR are associated (or correlated) with Grid Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grid Dynamics Holdings has no effect on the direction of BRF SA i.e., BRF SA and Grid Dynamics go up and down completely randomly.
Pair Corralation between BRF SA and Grid Dynamics
Given the investment horizon of 90 days BRF SA ADR is expected to generate 0.88 times more return on investment than Grid Dynamics. However, BRF SA ADR is 1.14 times less risky than Grid Dynamics. It trades about 0.04 of its potential returns per unit of risk. Grid Dynamics Holdings is currently generating about -0.16 per unit of risk. If you would invest 346.00 in BRF SA ADR on March 25, 2025 and sell it today you would earn a total of 14.00 from holding BRF SA ADR or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRF SA ADR vs. Grid Dynamics Holdings
Performance |
| Timeline |
| BRF SA ADR |
| Grid Dynamics Holdings |
BRF SA and Grid Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRF SA and Grid Dynamics
The main advantage of trading using opposite BRF SA and Grid Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRF SA position performs unexpectedly, Grid Dynamics 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 Grid Dynamics will offset losses from the drop in Grid Dynamics' long position.| BRF SA vs. Marfrig Global Foods | BRF SA vs. Pilgrims Pride Corp | BRF SA vs. John B Sanfilippo | BRF SA vs. Seneca Foods Corp |
| Grid Dynamics vs. ExlService Holdings | Grid Dynamics vs. ASGN Inc | Grid Dynamics vs. WNS Holdings | Grid Dynamics vs. Gartner |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |