Correlation Between Volaris and JBS NV

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

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

Diversification Opportunities for Volaris and JBS NV

0.1

Correlation Coefficient

Volaris  JBS NV

Average diversification

The 3 months correlation between Volaris and JBS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Volaris and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Volaris 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 Volaris 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 Volaris i.e., Volaris and JBS NV go up and down completely randomly.

Pair Corralation between Volaris and JBS NV

Given the investment horizon of 90 days Volaris is expected to generate 1.49 times more return on investment than JBS NV. However, Volaris is 1.49 times more volatile than JBS NV. It trades about 0.14 of its potential returns per unit of risk. JBS NV is currently generating about 0.09 per unit of risk. If you would invest  455.00  in Volaris on May 25, 2025 and sell it today you would earn a total of  132.00  from holding Volaris or generate 29.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	82.26%
Values	Daily Returns

Volaris  vs.  JBS NV

Volaris

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Volaris are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Volaris unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 conflicting fundamental drivers, JBS NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Volaris and JBS NV

The main advantage of trading using opposite Volaris and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volaris 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 Volaris 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.

Check out your portfolio center.

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 CEOs Directory module to screen CEOs from public companies around the world.