Correlation Between JBS NV and TARGET

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

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

Diversification Opportunities for JBS NV and TARGET

-0.42

Correlation Coefficient

JBS NV  TARGET

Very good diversification

The 3 months correlation between JBS and TARGET is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and TARGET PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGET PORATION 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 TARGET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGET PORATION has no effect on the direction of JBS NV i.e., JBS NV and TARGET go up and down completely randomly.

Pair Corralation between JBS NV and TARGET

Considering the 90-day investment horizon JBS NV is expected to generate 2.24 times more return on investment than TARGET. However, JBS NV is 2.24 times more volatile than TARGET PORATION. It trades about 0.09 of its potential returns per unit of risk. TARGET PORATION is currently generating about -0.11 per unit of risk. If you would invest  1,405  in JBS NV on May 24, 2025 and sell it today you would earn a total of  133.00  from holding JBS NV or generate 9.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	83.61%
Values	Daily Returns

JBS NV  vs.  TARGET PORATION

JBS NV

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in JBS NV are ranked lower than 6 (%) 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.

TARGET PORATION

Risk-Adjusted Performance

Weakest

Over the last 90 days TARGET PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for TARGET PORATION investors.

Pair Trading with JBS NV and TARGET

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

The idea behind JBS NV and TARGET PORATION 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.