Correlation Between JBS NV and Kroger
Can any of the company-specific risk be diversified away by investing in both JBS NV and Kroger 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 Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBS NV and Kroger Company, you can compare the effects of market volatilities on JBS NV and Kroger 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 Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS NV and Kroger.
Diversification Opportunities for JBS NV and Kroger
Very good diversification
The 3 months correlation between JBS and Kroger is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and Kroger Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger Company 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 Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kroger Company has no effect on the direction of JBS NV i.e., JBS NV and Kroger go up and down completely randomly.
Pair Corralation between JBS NV and Kroger
Considering the 90-day investment horizon JBS NV is expected to generate 1.05 times more return on investment than Kroger. However, JBS NV is 1.05 times more volatile than Kroger Company. It trades about 0.1 of its potential returns per unit of risk. Kroger Company is currently generating about -0.09 per unit of risk. If you would invest 1,285 in JBS NV on October 8, 2025 and sell it today you would earn a total of 112.00 from holding JBS NV or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBS NV vs. Kroger Company
Performance |
| Timeline |
| JBS NV |
| Kroger Company |
JBS NV and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBS NV and Kroger
The main advantage of trading using opposite JBS NV and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS NV position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| JBS NV vs. Kraft Heinz Co | JBS NV vs. General Mills | JBS NV vs. Archer Daniels Midland | JBS NV vs. Kenvue Inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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