Correlation Between JBS NV and NETCLASS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both JBS NV and NETCLASS TECHNOLOGY 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 NETCLASS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBS NV and NETCLASS TECHNOLOGY INC, you can compare the effects of market volatilities on JBS NV and NETCLASS TECHNOLOGY 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 NETCLASS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS NV and NETCLASS TECHNOLOGY.
Diversification Opportunities for JBS NV and NETCLASS TECHNOLOGY
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JBS and NETCLASS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and NETCLASS TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETCLASS TECHNOLOGY INC 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 NETCLASS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETCLASS TECHNOLOGY INC has no effect on the direction of JBS NV i.e., JBS NV and NETCLASS TECHNOLOGY go up and down completely randomly.
Pair Corralation between JBS NV and NETCLASS TECHNOLOGY
Considering the 90-day investment horizon JBS NV is expected to generate 0.22 times more return on investment than NETCLASS TECHNOLOGY. However, JBS NV is 4.54 times less risky than NETCLASS TECHNOLOGY. It trades about 0.03 of its potential returns per unit of risk. NETCLASS TECHNOLOGY INC is currently generating about -0.23 per unit of risk. If you would invest 1,405 in JBS NV on May 19, 2025 and sell it today you would earn a total of 25.00 from holding JBS NV or generate 1.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 74.6% |
Values | Daily Returns |
JBS NV vs. NETCLASS TECHNOLOGY INC
Performance |
Timeline |
JBS NV |
NETCLASS TECHNOLOGY INC |
JBS NV and NETCLASS TECHNOLOGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JBS NV and NETCLASS TECHNOLOGY
The main advantage of trading using opposite JBS NV and NETCLASS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS NV position performs unexpectedly, NETCLASS TECHNOLOGY 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 NETCLASS TECHNOLOGY will offset losses from the drop in NETCLASS TECHNOLOGY's long position.JBS NV vs. LB Foster | JBS NV vs. Marine Products | JBS NV vs. Yuexiu Transport Infrastructure | JBS NV vs. 51Talk Online Education |
NETCLASS TECHNOLOGY vs. Ryanair Holdings PLC | NETCLASS TECHNOLOGY vs. Grupo Aeroportuario del | NETCLASS TECHNOLOGY vs. Mesa Air Group | NETCLASS TECHNOLOGY vs. Agro Capital Management |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |