Correlation Between JBG SMITH and Aegon NV
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Aegon 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 JBG SMITH and Aegon NV 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 Aegon NV ADR, you can compare the effects of market volatilities on JBG SMITH and Aegon 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 JBG SMITH with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Aegon NV.
Diversification Opportunities for JBG SMITH and Aegon NV
Good diversification
The 3 months correlation between JBG and Aegon is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR 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 Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV ADR has no effect on the direction of JBG SMITH i.e., JBG SMITH and Aegon NV go up and down completely randomly.
Pair Corralation between JBG SMITH and Aegon NV
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Aegon NV. In addition to that, JBG SMITH is 1.44 times more volatile than Aegon NV ADR. It trades about -0.02 of its total potential returns per unit of risk. Aegon NV ADR is currently generating about 0.03 per unit of volatility. If you would invest 635.00 in Aegon NV ADR on September 4, 2024 and sell it today you would earn a total of 6.00 from holding Aegon NV ADR or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Aegon NV ADR
Performance |
| Timeline |
| JBG SMITH Properties |
| Aegon NV ADR |
JBG SMITH and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Aegon NV
The main advantage of trading using opposite JBG SMITH and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Aegon 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| JBG SMITH vs. Boston Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Alexandria Real Estate | JBG SMITH vs. Vornado Realty Trust |
| Aegon NV vs. Goosehead Insurance | Aegon NV vs. Enstar Group Limited | Aegon NV vs. American International Group | Aegon NV vs. Sun Life Financial |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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