Correlation Between JBG SMITH and Acco Brands
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Acco Brands 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 JBG SMITH and Acco Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBG SMITH Properties and Acco Brands, you can compare the effects of market volatilities on JBG SMITH and Acco Brands 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 JBG SMITH with a short position of Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Acco Brands.
Diversification Opportunities for JBG SMITH and Acco Brands
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JBG and Acco is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and JBG SMITH 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 JBG SMITH Properties are associated (or correlated) with Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of JBG SMITH i.e., JBG SMITH and Acco Brands go up and down completely randomly.
Pair Corralation between JBG SMITH and Acco Brands
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 1.0 times more return on investment than Acco Brands. However, JBG SMITH Properties is 1.0 times less risky than Acco Brands. It trades about 0.04 of its potential returns per unit of risk. Acco Brands is currently generating about 0.04 per unit of risk. If you would invest 1,314 in JBG SMITH Properties on August 30, 2024 and sell it today you would earn a total of 362.00 from holding JBG SMITH Properties or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Acco Brands
Performance |
| Timeline |
| JBG SMITH Properties |
| Acco Brands |
JBG SMITH and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Acco Brands
The main advantage of trading using opposite JBG SMITH and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Acco Brands 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 Acco Brands will offset losses from the drop in Acco Brands' long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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