Correlation Between JBS NV and Codexis

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

By analyzing existing cross correlation between JBS NV and Codexis, you can compare the effects of market volatilities on JBS NV and Codexis 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 JBS NV with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS NV and Codexis.

Diversification Opportunities for JBS NV and Codexis

-0.29

Correlation Coefficient

JBS NV  Codexis

Very good diversification

The 3 months correlation between JBS and Codexis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and JBS NV 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 JBS NV are associated (or correlated) with Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of JBS NV i.e., JBS NV and Codexis go up and down completely randomly.

Pair Corralation between JBS NV and Codexis

Considering the 90-day investment horizon JBS NV is expected to under-perform the Codexis. But the stock apears to be less risky and, when comparing its historical volatility, JBS NV is 1.92 times less risky than Codexis. The stock trades about -0.05 of its potential returns per unit of risk. The Codexis is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  233.00  in Codexis on April 29, 2025 and sell it today you would earn a total of  78.00  from holding Codexis or generate 33.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.79%
Values	Daily Returns

JBS NV  vs.  Codexis

JBS NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days JBS NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Codexis

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Codexis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JBS NV and Codexis

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

The idea behind JBS NV and Codexis 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.