Correlation Between JBG SMITH and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Duluth Holdings 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 Duluth Holdings 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 Duluth Holdings, you can compare the effects of market volatilities on JBG SMITH and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Duluth Holdings.
Diversification Opportunities for JBG SMITH and Duluth Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JBG and Duluth is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of JBG SMITH i.e., JBG SMITH and Duluth Holdings go up and down completely randomly.
Pair Corralation between JBG SMITH and Duluth Holdings
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.58 times more return on investment than Duluth Holdings. However, JBG SMITH Properties is 1.73 times less risky than Duluth Holdings. It trades about 0.01 of its potential returns per unit of risk. Duluth Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,680 in JBG SMITH Properties on September 1, 2024 and sell it today you would earn a total of 29.00 from holding JBG SMITH Properties or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Duluth Holdings
Performance |
| Timeline |
| JBG SMITH Properties |
| Duluth Holdings |
JBG SMITH and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Duluth Holdings
The main advantage of trading using opposite JBG SMITH and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Duluth Holdings vs. Capri Holdings | Duluth Holdings vs. Movado Group | Duluth Holdings vs. Tapestry | Duluth Holdings vs. Brilliant Earth Group |
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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