Correlation Between Vanguard and JBS NV

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

By analyzing existing cross correlation between Vanguard SP 500 and JBS NV, you can compare the effects of market volatilities on Vanguard 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 Vanguard with a short position of JBS NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard and JBS NV.

Diversification Opportunities for Vanguard and JBS NV

-0.35

Correlation Coefficient

Vanguard  JBS NV

Very good diversification

The 3 months correlation between Vanguard and JBS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard SP 500 and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Vanguard 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 Vanguard SP 500 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 Vanguard i.e., Vanguard and JBS NV go up and down completely randomly.

Pair Corralation between Vanguard and JBS NV

Considering the 90-day investment horizon Vanguard SP 500 is expected to generate 0.42 times more return on investment than JBS NV. However, Vanguard SP 500 is 2.39 times less risky than JBS NV. It trades about 0.1 of its potential returns per unit of risk. JBS NV is currently generating about -0.09 per unit of risk. If you would invest  60,272  in Vanguard SP 500 on September 12, 2025 and sell it today you would earn a total of  2,944  from holding Vanguard SP 500 or generate 4.88% return on investment over 90 days.

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

Vanguard SP 500  vs.  JBS NV

Vanguard SP 500

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard SP 500 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Vanguard is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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 latest unsteady performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Vanguard and JBS NV

The main advantage of trading using opposite Vanguard and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard 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 Vanguard SP 500 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.