Correlation Between JBS NV and SIMON

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

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

Diversification Opportunities for JBS NV and SIMON

0.07

Correlation Coefficient

JBS NV  SIMON

Significant diversification

The 3 months correlation between JBS and SIMON is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and SIMON PROPERTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PROPERTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PROPERTY GROUP has no effect on the direction of JBS NV i.e., JBS NV and SIMON go up and down completely randomly.

Pair Corralation between JBS NV and SIMON

Considering the 90-day investment horizon JBS NV is expected to generate 2.29 times more return on investment than SIMON. However, JBS NV is 2.29 times more volatile than SIMON PROPERTY GROUP. It trades about 0.01 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about 0.01 per unit of risk. If you would invest  1,405  in JBS NV on May 10, 2025 and sell it today you would lose (1.00) from holding JBS NV or give up 0.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	64.52%
Values	Daily Returns

JBS NV  vs.  SIMON PROPERTY GROUP

JBS NV

Risk-Adjusted Performance

Weakest

Over the last 90 days JBS NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, JBS NV is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

SIMON PROPERTY GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days SIMON PROPERTY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SIMON is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JBS NV and SIMON

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

The idea behind JBS NV and SIMON PROPERTY GROUP 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.