Correlation Between Chocoladefabriken and JBS NV
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken 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 Chocoladefabriken and JBS NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Sprngli and JBS NV, you can compare the effects of market volatilities on Chocoladefabriken 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 Chocoladefabriken with a short position of JBS NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and JBS NV.
Diversification Opportunities for Chocoladefabriken and JBS NV
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chocoladefabriken and JBS is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Sprngl and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Chocoladefabriken 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 Chocoladefabriken Lindt Sprngli 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 Chocoladefabriken i.e., Chocoladefabriken and JBS NV go up and down completely randomly.
Pair Corralation between Chocoladefabriken and JBS NV
Assuming the 90 days horizon Chocoladefabriken Lindt Sprngli is expected to generate 0.63 times more return on investment than JBS NV. However, Chocoladefabriken Lindt Sprngli is 1.58 times less risky than JBS NV. It trades about 0.15 of its potential returns per unit of risk. JBS NV is currently generating about -0.08 per unit of risk. If you would invest 1,439,795 in Chocoladefabriken Lindt Sprngli on April 20, 2025 and sell it today you would earn a total of 241,287 from holding Chocoladefabriken Lindt Sprngli or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 41.94% |
| Values | Daily Returns |
Chocoladefabriken Lindt Sprngl vs. JBS NV
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| JBS NV |
Chocoladefabriken and JBS NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and JBS NV
The main advantage of trading using opposite Chocoladefabriken and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken 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.| Chocoladefabriken vs. Mondelez International | Chocoladefabriken vs. Tootsie Roll Industries | Chocoladefabriken vs. Rocky Mountain Chocolate | Chocoladefabriken vs. Barry Callebaut AG |
| JBS NV vs. Rocky Mountain Chocolate | JBS NV vs. Chocoladefabriken Lindt Sprngli | JBS NV vs. Tootsie Roll Industries | JBS NV vs. Mondelez International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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