Correlation Between JBS SA and ConAgra Foods
Can any of the company-specific risk be diversified away by investing in both JBS SA and ConAgra Foods 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 SA and ConAgra Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBS SA and ConAgra Foods, you can compare the effects of market volatilities on JBS SA and ConAgra Foods 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 SA with a short position of ConAgra Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS SA and ConAgra Foods.
Diversification Opportunities for JBS SA and ConAgra Foods
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between JBS and ConAgra is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding JBS SA and ConAgra Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Foods and JBS SA 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 SA are associated (or correlated) with ConAgra Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Foods has no effect on the direction of JBS SA i.e., JBS SA and ConAgra Foods go up and down completely randomly.
Pair Corralation between JBS SA and ConAgra Foods
Assuming the 90 days horizon JBS SA is expected to generate 1.74 times more return on investment than ConAgra Foods. However, JBS SA is 1.74 times more volatile than ConAgra Foods. It trades about -0.06 of its potential returns per unit of risk. ConAgra Foods is currently generating about -0.27 per unit of risk. If you would invest 1,257 in JBS SA on August 28, 2024 and sell it today you would lose (38.00) from holding JBS SA or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBS SA vs. ConAgra Foods
Performance |
| Timeline |
| JBS SA |
| ConAgra Foods |
JBS SA and ConAgra Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBS SA and ConAgra Foods
The main advantage of trading using opposite JBS SA and ConAgra Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS SA position performs unexpectedly, ConAgra Foods 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 ConAgra Foods will offset losses from the drop in ConAgra Foods' long position.| JBS SA vs. Artisan Consumer Goods | JBS SA vs. The A2 Milk | JBS SA vs. BioAdaptives | JBS SA vs. General Mills |
| ConAgra Foods vs. Bellring Brands LLC | ConAgra Foods vs. Ingredion Incorporated | ConAgra Foods vs. Nomad Foods | ConAgra Foods vs. Simply Good Foods |
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.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |