Correlation Between Estee Lauder and JBS NV

Can any of the company-specific risk be diversified away by investing in both Estee Lauder 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 Estee Lauder and JBS NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Estee Lauder Companies and JBS NV, you can compare the effects of market volatilities on Estee Lauder 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 Estee Lauder with a short position of JBS NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and JBS NV.

Diversification Opportunities for Estee Lauder and JBS NV

-0.68

Correlation Coefficient

Estee Lauder  JBS NV

Excellent diversification

The 3 months correlation between Estee and JBS is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Estee Lauder 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 Estee Lauder Companies 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 Estee Lauder i.e., Estee Lauder and JBS NV go up and down completely randomly.

Pair Corralation between Estee Lauder and JBS NV

Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to generate 1.4 times more return on investment than JBS NV. However, Estee Lauder is 1.4 times more volatile than JBS NV. It trades about 0.04 of its potential returns per unit of risk. JBS NV is currently generating about -0.04 per unit of risk. If you would invest  9,214  in Estee Lauder Companies on August 3, 2025 and sell it today you would earn a total of  455.00  from holding Estee Lauder Companies or generate 4.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Estee Lauder Companies  vs.  JBS NV

Estee Lauder Companies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Estee Lauder Companies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, Estee Lauder may actually be approaching a critical reversion point that can send shares even higher in December 2025.

JBS NV

Risk-Adjusted Performance

Weakest

Over the last 90 days JBS NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, JBS NV is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Estee Lauder and JBS NV

The main advantage of trading using opposite Estee Lauder and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder 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.

The idea behind Estee Lauder Companies and JBS NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.