Correlation Between JBG SMITH and Atmus Filtration
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Atmus Filtration 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 Atmus Filtration 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 Atmus Filtration Technologies, you can compare the effects of market volatilities on JBG SMITH and Atmus Filtration 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 Atmus Filtration. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Atmus Filtration.
Diversification Opportunities for JBG SMITH and Atmus Filtration
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JBG and Atmus is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Atmus Filtration Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atmus Filtration Tec 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 Atmus Filtration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atmus Filtration Tec has no effect on the direction of JBG SMITH i.e., JBG SMITH and Atmus Filtration go up and down completely randomly.
Pair Corralation between JBG SMITH and Atmus Filtration
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Atmus Filtration. In addition to that, JBG SMITH is 1.0 times more volatile than Atmus Filtration Technologies. It trades about -0.06 of its total potential returns per unit of risk. Atmus Filtration Technologies is currently generating about 0.14 per unit of volatility. If you would invest 3,503 in Atmus Filtration Technologies on September 12, 2024 and sell it today you would earn a total of 561.00 from holding Atmus Filtration Technologies or generate 16.01% 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. Atmus Filtration Technologies
Performance |
| Timeline |
| JBG SMITH Properties |
| Atmus Filtration Tec |
JBG SMITH and Atmus Filtration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Atmus Filtration
The main advantage of trading using opposite JBG SMITH and Atmus Filtration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Atmus Filtration 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 Atmus Filtration will offset losses from the drop in Atmus Filtration's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Atmus Filtration vs. Codexis | Atmus Filtration vs. Hooker Furniture | Atmus Filtration vs. Hudson Pacific Properties | Atmus Filtration vs. NL Industries |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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