Correlation Between JBG SMITH and Apple Hospitality
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Apple Hospitality 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 Apple Hospitality 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 Apple Hospitality REIT, you can compare the effects of market volatilities on JBG SMITH and Apple Hospitality 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 Apple Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Apple Hospitality.
Diversification Opportunities for JBG SMITH and Apple Hospitality
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBG and Apple is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Apple Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Hospitality REIT 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 Apple Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Hospitality REIT has no effect on the direction of JBG SMITH i.e., JBG SMITH and Apple Hospitality go up and down completely randomly.
Pair Corralation between JBG SMITH and Apple Hospitality
Given the investment horizon of 90 days JBG SMITH is expected to generate 5.85 times less return on investment than Apple Hospitality. In addition to that, JBG SMITH is 1.18 times more volatile than Apple Hospitality REIT. It trades about 0.01 of its total potential returns per unit of risk. Apple Hospitality REIT is currently generating about 0.08 per unit of volatility. If you would invest 1,468 in Apple Hospitality REIT on August 27, 2024 and sell it today you would earn a total of 143.00 from holding Apple Hospitality REIT or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Apple Hospitality REIT
Performance |
| Timeline |
| JBG SMITH Properties |
| Apple Hospitality REIT |
JBG SMITH and Apple Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Apple Hospitality
The main advantage of trading using opposite JBG SMITH and Apple Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Apple Hospitality 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 Apple Hospitality will offset losses from the drop in Apple Hospitality's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Apple Hospitality vs. Park Hotels Resorts | Apple Hospitality vs. Diamondrock Hospitality | Apple Hospitality vs. Ryman Hospitality Properties | Apple Hospitality vs. Pebblebrook Hotel Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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