Correlation Between JBS SA and Central Garden
Can any of the company-specific risk be diversified away by investing in both JBS SA and Central Garden 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 Central Garden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBS SA and Central Garden Pet, you can compare the effects of market volatilities on JBS SA and Central Garden 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 Central Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS SA and Central Garden.
Diversification Opportunities for JBS SA and Central Garden
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between JBS and Central is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding JBS SA and Central Garden Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Garden Pet 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 Central Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Garden Pet has no effect on the direction of JBS SA i.e., JBS SA and Central Garden go up and down completely randomly.
Pair Corralation between JBS SA and Central Garden
Assuming the 90 days horizon JBS SA is expected to generate 1.16 times more return on investment than Central Garden. However, JBS SA is 1.16 times more volatile than Central Garden Pet. It trades about 0.09 of its potential returns per unit of risk. Central Garden Pet is currently generating about 0.03 per unit of risk. If you would invest 637.00 in JBS SA on August 31, 2024 and sell it today you would earn a total of 594.00 from holding JBS SA or generate 93.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBS SA vs. Central Garden Pet
Performance |
| Timeline |
| JBS SA |
| Central Garden Pet |
JBS SA and Central Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBS SA and Central Garden
The main advantage of trading using opposite JBS SA and Central Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS SA position performs unexpectedly, Central Garden 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 Central Garden will offset losses from the drop in Central Garden's long position.| JBS SA vs. The A2 Milk | JBS SA vs. Altavoz Entertainment | JBS SA vs. Artisan Consumer Goods | JBS SA vs. General Mills |
| Central Garden vs. Seneca Foods Corp | Central Garden vs. Seneca Foods Corp | Central Garden vs. Natures Sunshine Products | Central Garden vs. J J Snack |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world |