Correlation Between JBS NV and Eltek
Can any of the company-specific risk be diversified away by investing in both JBS NV and Eltek 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 NV and Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBS NV and Eltek, you can compare the effects of market volatilities on JBS NV and Eltek 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 NV with a short position of Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS NV and Eltek.
Diversification Opportunities for JBS NV and Eltek
Significant diversification
The 3 months correlation between JBS and Eltek is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek and JBS NV 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 NV are associated (or correlated) with Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of JBS NV i.e., JBS NV and Eltek go up and down completely randomly.
Pair Corralation between JBS NV and Eltek
Considering the 90-day investment horizon JBS NV is expected to under-perform the Eltek. But the stock apears to be less risky and, when comparing its historical volatility, JBS NV is 1.03 times less risky than Eltek. The stock trades about -0.05 of its potential returns per unit of risk. The Eltek is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 825.00 in Eltek on May 1, 2025 and sell it today you would earn a total of 219.00 from holding Eltek or generate 26.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 55.74% |
| Values | Daily Returns |
JBS NV vs. Eltek
Performance |
| Timeline |
| JBS NV |
| Eltek |
JBS NV and Eltek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBS NV and Eltek
The main advantage of trading using opposite JBS NV and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS NV position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.| JBS NV vs. Getty Images Holdings | JBS NV vs. National CineMedia | JBS NV vs. Zane Interactive Publishing | JBS NV vs. Bright Scholar Education |
| Eltek vs. Bel Fuse A | Eltek vs. BOS Better Online | Eltek vs. Electro Sensors | Eltek vs. MicroCloud Hologram |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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