Correlation Between JBS NV and Church Dwight

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

By analyzing existing cross correlation between JBS NV and Church Dwight, you can compare the effects of market volatilities on JBS NV and Church Dwight 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 Church Dwight. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBS NV and Church Dwight.

Diversification Opportunities for JBS NV and Church Dwight

0.52

Correlation Coefficient

JBS NV  Church Dwight

Very weak diversification

The 3 months correlation between JBS and Church is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding JBS NV and Church Dwight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Dwight 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 Church Dwight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Dwight has no effect on the direction of JBS NV i.e., JBS NV and Church Dwight go up and down completely randomly.

Pair Corralation between JBS NV and Church Dwight

Considering the 90-day investment horizon JBS NV is expected to generate 1.5 times more return on investment than Church Dwight. However, JBS NV is 1.5 times more volatile than Church Dwight. It trades about -0.03 of its potential returns per unit of risk. Church Dwight is currently generating about -0.13 per unit of risk. If you would invest  1,380  in JBS NV on July 31, 2025 and sell it today you would lose (59.00) from holding JBS NV or give up 4.28% of portfolio value over 90 days.

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

JBS NV  vs.  Church Dwight

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.

Church Dwight

Risk-Adjusted Performance

Weakest

Over the last 90 days Church Dwight has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with JBS NV and Church Dwight

The main advantage of trading using opposite JBS NV and Church Dwight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBS NV position performs unexpectedly, Church Dwight 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 Church Dwight will offset losses from the drop in Church Dwight's long position.

The idea behind JBS NV and Church Dwight 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.