Correlation Between JBS ON and Baumer SA
Can any of the company-specific risk be diversified away by investing in both JBS ON and Baumer SA 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 ON and Baumer SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBS ON NM and Baumer SA, you can compare the effects of market volatilities on JBS ON and Baumer SA 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 ON with a short position of Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS ON and Baumer SA.
Diversification Opportunities for JBS ON and Baumer SA
Pay attention - limited upside
The 3 months correlation between JBS and Baumer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JBS ON NM and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA and JBS ON 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 ON NM are associated (or correlated) with Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of JBS ON i.e., JBS ON and Baumer SA go up and down completely randomly.
Pair Corralation between JBS ON and Baumer SA
If you would invest 1,930 in JBS ON NM on November 2, 2024 and sell it today you would earn a total of 1,577 from holding JBS ON NM or generate 81.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JBS ON NM vs. Baumer SA
Performance |
| Timeline |
| JBS ON NM |
| Baumer SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
JBS ON and Baumer SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBS ON and Baumer SA
The main advantage of trading using opposite JBS ON and Baumer SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS ON position performs unexpectedly, Baumer SA 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 Baumer SA will offset losses from the drop in Baumer SA's long position.| JBS ON vs. Waste Management | JBS ON vs. Chunghwa Telecom Co, | JBS ON vs. Vulcan Materials | JBS ON vs. Annaly Capital Management, |
| Baumer SA vs. Credit Acceptance | Baumer SA vs. Capital One Financial | Baumer SA vs. Sumitomo Mitsui Financial | Baumer SA vs. Applied Materials, |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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