Correlation Between BCE and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both BCE 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 BCE and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and JBG SMITH Properties, you can compare the effects of market volatilities on BCE 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 BCE with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and JBG SMITH.
Diversification Opportunities for BCE and JBG SMITH
Poor diversification
The 3 months correlation between BCE and JBG is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc 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 BCE 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 BCE Inc 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 BCE i.e., BCE and JBG SMITH go up and down completely randomly.
Pair Corralation between BCE and JBG SMITH
Considering the 90-day investment horizon BCE Inc is expected to under-perform the JBG SMITH. But the stock apears to be less risky and, when comparing its historical volatility, BCE Inc is 1.2 times less risky than JBG SMITH. The stock trades about -0.41 of its potential returns per unit of risk. The JBG SMITH Properties is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,798 in JBG SMITH Properties on August 28, 2024 and sell it today you would lose (131.00) from holding JBG SMITH Properties or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCE Inc vs. JBG SMITH Properties
Performance |
| Timeline |
| BCE Inc |
| JBG SMITH Properties |
BCE and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and JBG SMITH
The main advantage of trading using opposite BCE and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE 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.| BCE vs. Liberty Broadband Srs | BCE vs. Ribbon Communications | BCE vs. Liberty Broadband Srs | BCE vs. Shenandoah Telecommunications Co |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets |