Correlation Between NETGEAR and JBS NV

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

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

Diversification Opportunities for NETGEAR and JBS NV

0.3

Correlation Coefficient

NETGEAR  JBS NV

Weak diversification

The 3 months correlation between NETGEAR and JBS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and NETGEAR 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 NETGEAR are associated (or correlated) with JBS NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBS NV has no effect on the direction of NETGEAR i.e., NETGEAR and JBS NV go up and down completely randomly.

Pair Corralation between NETGEAR and JBS NV

Given the investment horizon of 90 days NETGEAR is expected to under-perform the JBS NV. In addition to that, NETGEAR is 1.16 times more volatile than JBS NV. It trades about -0.04 of its total potential returns per unit of risk. JBS NV is currently generating about 0.09 per unit of volatility. If you would invest  1,405  in JBS NV on May 28, 2025 and sell it today you would earn a total of  132.00  from holding JBS NV or generate 9.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.87%
Values	Daily Returns

NETGEAR  vs.  JBS NV

NETGEAR

Risk-Adjusted Performance

Weakest

Over the last 90 days NETGEAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

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 unsteady fundamental drivers, JBS NV may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with NETGEAR and JBS NV

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

The idea behind NETGEAR and JBS 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..