Correlation Between Coca Cola and JBS NV
Can any of the company-specific risk be diversified away by investing in both Coca Cola 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 Coca Cola and JBS NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola European Partners and JBS NV, you can compare the effects of market volatilities on Coca Cola 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 Coca Cola with a short position of JBS NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and JBS NV.
Diversification Opportunities for Coca Cola and JBS NV
Modest diversification
The 3 months correlation between Coca and JBS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola European Partners and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Coca Cola 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 Coca Cola European Partners 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 Coca Cola i.e., Coca Cola and JBS NV go up and down completely randomly.
Pair Corralation between Coca Cola and JBS NV
Given the investment horizon of 90 days Coca Cola is expected to generate 2.47 times less return on investment than JBS NV. But when comparing it to its historical volatility, Coca Cola European Partners is 1.89 times less risky than JBS NV. It trades about 0.13 of its potential returns per unit of risk. JBS NV is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,366 in JBS NV on September 20, 2025 and sell it today you would earn a total of 84.00 from holding JBS NV or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coca Cola European Partners vs. JBS NV
Performance |
| Timeline |
| Coca Cola European |
| JBS NV |
Coca Cola and JBS NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and JBS NV
The main advantage of trading using opposite Coca Cola and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola 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.| Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Ambev SA ADR | Coca Cola vs. Kroger Company | Coca Cola vs. Target |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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