Correlation Between Acm Research and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Acm Research and JBG SMITH 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 Acm Research and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Research and JBG SMITH Properties, you can compare the effects of market volatilities on Acm Research and JBG SMITH 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 Acm Research with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Research and JBG SMITH.
Diversification Opportunities for Acm Research and JBG SMITH
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acm and JBG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties and Acm Research 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 Acm Research are associated (or correlated) with JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Acm Research i.e., Acm Research and JBG SMITH go up and down completely randomly.
Pair Corralation between Acm Research and JBG SMITH
Given the investment horizon of 90 days Acm Research is expected to generate 2.3 times more return on investment than JBG SMITH. However, Acm Research is 2.3 times more volatile than JBG SMITH Properties. It trades about 0.05 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.0 per unit of risk. If you would invest 720.00 in Acm Research on September 14, 2024 and sell it today you would earn a total of 816.00 from holding Acm Research or generate 113.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acm Research vs. JBG SMITH Properties
Performance |
| Timeline |
| Acm Research |
| JBG SMITH Properties |
Acm Research and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Research and JBG SMITH
The main advantage of trading using opposite Acm Research and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Research position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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