Correlation Between JetAI and CMBTECH NV

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

By analyzing existing cross correlation between JetAI Inc and CMBTECH NV, you can compare the effects of market volatilities on JetAI and CMBTECH NV 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 JetAI with a short position of CMBTECH NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetAI and CMBTECH NV.

Diversification Opportunities for JetAI and CMBTECH NV

0.36

Correlation Coefficient

JetAI  CMBTECH NV

Weak diversification

The 3 months correlation between JetAI and CMBTECH is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding JetAI Inc and CMBTECH NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMBTECH NV and JetAI 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 JetAI Inc are associated (or correlated) with CMBTECH NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMBTECH NV has no effect on the direction of JetAI i.e., JetAI and CMBTECH NV go up and down completely randomly.

Pair Corralation between JetAI and CMBTECH NV

Given the investment horizon of 90 days JetAI Inc is expected to under-perform the CMBTECH NV. In addition to that, JetAI is 1.66 times more volatile than CMBTECH NV. It trades about -0.06 of its total potential returns per unit of risk. CMBTECH NV is currently generating about -0.03 per unit of volatility. If you would invest  902.00  in CMBTECH NV on May 26, 2025 and sell it today you would lose (59.00) from holding CMBTECH NV or give up 6.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

JetAI Inc  vs.  CMBTECH NV

JetAI Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days JetAI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

CMBTECH NV

Risk-Adjusted Performance

Weakest

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

Pair Trading with JetAI and CMBTECH NV

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

The idea behind JetAI Inc and CMBTECH NV 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.