Correlation Between JBS NV and Transcontinental

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

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

Diversification Opportunities for JBS NV and Transcontinental

-0.28

Correlation Coefficient

JBS NV  Transcontinental

Very good diversification

The 3 months correlation between JBS and Transcontinental is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and Transcontinental Realty Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transcontinental Realty 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 Transcontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transcontinental Realty has no effect on the direction of JBS NV i.e., JBS NV and Transcontinental go up and down completely randomly.

Pair Corralation between JBS NV and Transcontinental

Considering the 90-day investment horizon JBS NV is expected to generate 11.94 times less return on investment than Transcontinental. But when comparing it to its historical volatility, JBS NV is 1.37 times less risky than Transcontinental. It trades about 0.02 of its potential returns per unit of risk. Transcontinental Realty Investors is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3,316  in Transcontinental Realty Investors on May 14, 2025 and sell it today you would earn a total of  999.00  from holding Transcontinental Realty Investors or generate 30.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	69.35%
Values	Daily Returns

JBS NV  vs.  Transcontinental Realty Invest

JBS NV

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JBS NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, JBS NV is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Transcontinental Realty

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Transcontinental Realty Investors are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental indicators, Transcontinental demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JBS NV and Transcontinental

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

The idea behind JBS NV and Transcontinental Realty Investors 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.