Correlation Between Marfrig Global and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Marfrig Global and ProShares Short 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 ProShares Short 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 ProShares Short Russell2000, you can compare the effects of market volatilities on Marfrig Global and ProShares Short 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 ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and ProShares Short.
Diversification Opportunities for Marfrig Global and ProShares Short
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and ProShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and ProShares Short Russell2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short Russ 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 ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short Russ has no effect on the direction of Marfrig Global i.e., Marfrig Global and ProShares Short go up and down completely randomly.
Pair Corralation between Marfrig Global and ProShares Short
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 2.31 times more return on investment than ProShares Short. However, Marfrig Global is 2.31 times more volatile than ProShares Short Russell2000. It trades about 0.16 of its potential returns per unit of risk. ProShares Short Russell2000 is currently generating about 0.0 per unit of risk. If you would invest 297.00 in Marfrig Global Foods on March 22, 2025 and sell it today you would earn a total of 143.00 from holding Marfrig Global Foods or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Marfrig Global Foods vs. ProShares Short Russell2000
Performance |
| Timeline |
| Marfrig Global Foods |
| ProShares Short Russ |
Marfrig Global and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and ProShares Short
The main advantage of trading using opposite Marfrig Global and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global position performs unexpectedly, ProShares Short 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 ProShares Short will offset losses from the drop in ProShares Short's 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 |
| ProShares Short vs. ProShares Short QQQ | ProShares Short vs. ProShares Short Dow30 | ProShares Short vs. ProShares Short MidCap400 | ProShares Short vs. ProShares UltraShort Russell2000 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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