Correlation Between JBG SMITH and Genfit
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Genfit 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 Genfit 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 Genfit, you can compare the effects of market volatilities on JBG SMITH and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Genfit.
Diversification Opportunities for JBG SMITH and Genfit
Very weak diversification
The 3 months correlation between JBG and Genfit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of JBG SMITH i.e., JBG SMITH and Genfit go up and down completely randomly.
Pair Corralation between JBG SMITH and Genfit
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.6 times more return on investment than Genfit. However, JBG SMITH Properties is 1.66 times less risky than Genfit. It trades about 0.1 of its potential returns per unit of risk. Genfit is currently generating about -0.44 per unit of risk. If you would invest 1,565 in JBG SMITH Properties on September 13, 2024 and sell it today you would earn a total of 61.00 from holding JBG SMITH Properties or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Genfit
Performance |
| Timeline |
| JBG SMITH Properties |
| Genfit |
JBG SMITH and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Genfit
The main advantage of trading using opposite JBG SMITH and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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