Correlation Between Marfrig Global and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Small, you can compare the effects of market volatilities on Marfrig Global and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Goldman Sachs.
Diversification Opportunities for Marfrig Global and Goldman Sachs
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfrig and Goldman is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Small has no effect on the direction of Marfrig Global i.e., Marfrig Global and Goldman Sachs go up and down completely randomly.
Pair Corralation between Marfrig Global and Goldman Sachs
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 2.3 times more return on investment than Goldman Sachs. However, Marfrig Global is 2.3 times more volatile than Goldman Sachs Small. It trades about 0.12 of its potential returns per unit of risk. Goldman Sachs Small is currently generating about 0.03 per unit of risk. If you would invest 305.00 in Marfrig Global Foods on March 25, 2025 and sell it today you would earn a total of 105.00 from holding Marfrig Global Foods or generate 34.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Goldman Sachs Small
Performance |
| Timeline |
| Marfrig Global Foods |
| Goldman Sachs Small |
Marfrig Global and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Goldman Sachs
The main advantage of trading using opposite Marfrig Global and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Marfrig Global vs. BRF SA ADR | Marfrig Global vs. Pilgrims Pride Corp | Marfrig Global vs. John B Sanfilippo | Marfrig Global vs. Seneca Foods Corp |
| Goldman Sachs vs. Qs Defensive Growth | Goldman Sachs vs. L Abbett Growth | Goldman Sachs vs. The Equity Growth | Goldman Sachs vs. Upright Growth Income |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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