Correlation Between DAmico International and Marfrig Global

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

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

Diversification Opportunities for DAmico International and Marfrig Global

0.4

Correlation Coefficient

DAmico International  Marfrig Global

Very weak diversification

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

Pair Corralation between DAmico International and Marfrig Global

Assuming the 90 days horizon DAmico International is expected to generate 2.03 times less return on investment than Marfrig Global. But when comparing it to its historical volatility, dAmico International Shipping is 2.23 times less risky than Marfrig Global. It trades about 0.05 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  371.00  in Marfrig Global Foods on May 5, 2025 and sell it today you would earn a total of  29.00  from holding Marfrig Global Foods or generate 7.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.92%
Values	Daily Returns

dAmico International Shipping  vs.  Marfrig Global Foods

dAmico International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in dAmico International Shipping are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DAmico International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Marfrig Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DAmico International and Marfrig Global

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

The idea behind dAmico International Shipping and Marfrig Global Foods 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.

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 CEOs Directory module to screen CEOs from public companies around the world.