Correlation Between JBG SMITH and Fuyao Glass
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Fuyao Glass 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 Fuyao Glass 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 Fuyao Glass Industry, you can compare the effects of market volatilities on JBG SMITH and Fuyao Glass 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 Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Fuyao Glass.
Diversification Opportunities for JBG SMITH and Fuyao Glass
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JBG and Fuyao is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry 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 Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of JBG SMITH i.e., JBG SMITH and Fuyao Glass go up and down completely randomly.
Pair Corralation between JBG SMITH and Fuyao Glass
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Fuyao Glass. But the stock apears to be less risky and, when comparing its historical volatility, JBG SMITH Properties is 2.24 times less risky than Fuyao Glass. The stock trades about 0.0 of its potential returns per unit of risk. The Fuyao Glass Industry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 54.00 in Fuyao Glass Industry on October 9, 2024 and sell it today you would earn a total of 113.00 from holding Fuyao Glass Industry or generate 209.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
JBG SMITH Properties vs. Fuyao Glass Industry
Performance |
| Timeline |
| JBG SMITH Properties |
| Fuyao Glass Industry |
JBG SMITH and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Fuyao Glass
The main advantage of trading using opposite JBG SMITH and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Fuyao Glass vs. Barrick Gold Corp | Fuyao Glass vs. ioneer Ltd American | Fuyao Glass vs. National Vision Holdings | Fuyao Glass vs. BW Offshore 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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