Correlation Between JBG SMITH and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Altimar Acquisition 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 Altimar Acquisition 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 Altimar Acquisition Corp, you can compare the effects of market volatilities on JBG SMITH and Altimar Acquisition 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 Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Altimar Acquisition.
Diversification Opportunities for JBG SMITH and Altimar Acquisition
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between JBG and Altimar is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp 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 Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of JBG SMITH i.e., JBG SMITH and Altimar Acquisition go up and down completely randomly.
Pair Corralation between JBG SMITH and Altimar Acquisition
If you would invest 1,565 in JBG SMITH Properties on September 13, 2024 and sell it today you would earn a total of 69.00 from holding JBG SMITH Properties or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
JBG SMITH Properties vs. Altimar Acquisition Corp
Performance |
| Timeline |
| JBG SMITH Properties |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JBG SMITH and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Altimar Acquisition
The main advantage of trading using opposite JBG SMITH and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Altimar Acquisition 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 Altimar Acquisition will offset losses from the drop in Altimar Acquisition's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Altimar Acquisition vs. CECO Environmental Corp | Altimar Acquisition vs. SEI Investments | Altimar Acquisition vs. Black Hills | Altimar Acquisition vs. CapitaLand Investment Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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