Correlation Between Willamette Valley and JBS NV

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

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

Diversification Opportunities for Willamette Valley and JBS NV

0.31

Correlation Coefficient

Willamette Valley  JBS NV

Weak diversification

The 3 months correlation between Willamette and JBS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Willamette Valley 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 Willamette Valley Vineyards 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 Willamette Valley i.e., Willamette Valley and JBS NV go up and down completely randomly.

Pair Corralation between Willamette Valley and JBS NV

Given the investment horizon of 90 days Willamette Valley Vineyards is expected to under-perform the JBS NV. In addition to that, Willamette Valley is 1.07 times more volatile than JBS NV. It trades about -0.12 of its total potential returns per unit of risk. JBS NV is currently generating about -0.01 per unit of volatility. If you would invest  1,405  in JBS NV on May 4, 2025 and sell it today you would lose (32.00) from holding JBS NV or give up 2.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	58.73%
Values	Daily Returns

Willamette Valley Vineyards  vs.  JBS NV

Willamette Valley

Risk-Adjusted Performance

Very Weak

Over the last 90 days Willamette Valley Vineyards has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

JBS NV

Risk-Adjusted Performance

Very Weak

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Willamette Valley and JBS NV

The main advantage of trading using opposite Willamette Valley and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley 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 Willamette Valley Vineyards 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.