Correlation Between JBS NV and CleanTech Lithium

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

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

Diversification Opportunities for JBS NV and CleanTech Lithium

0.0

Correlation Coefficient

JBS NV  CleanTech Lithium

Pay attention - limited upside

The 3 months correlation between JBS and CleanTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and CleanTech Lithium Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium Plc 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 CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium Plc has no effect on the direction of JBS NV i.e., JBS NV and CleanTech Lithium go up and down completely randomly.

Pair Corralation between JBS NV and CleanTech Lithium

Considering the 90-day investment horizon JBS NV is expected to generate 0.37 times more return on investment than CleanTech Lithium. However, JBS NV is 2.7 times less risky than CleanTech Lithium. It trades about 0.1 of its potential returns per unit of risk. CleanTech Lithium Plc is currently generating about -0.12 per unit of risk. If you would invest  1,405  in JBS NV on May 27, 2025 and sell it today you would earn a total of  160.00  from holding JBS NV or generate 11.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	81.54%
Values	Daily Returns

JBS NV  vs.  CleanTech Lithium Plc

JBS NV

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in JBS NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, JBS NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

CleanTech Lithium Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days CleanTech Lithium Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with JBS NV and CleanTech Lithium

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

The idea behind JBS NV and CleanTech Lithium Plc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.