Correlation Between JBG SMITH and Integral
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on JBG SMITH and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Integral.
Diversification Opportunities for JBG SMITH and Integral
Good diversification
The 3 months correlation between JBG and Integral is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of JBG SMITH i.e., JBG SMITH and Integral go up and down completely randomly.
Pair Corralation between JBG SMITH and Integral
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.62 times more return on investment than Integral. However, JBG SMITH Properties is 1.62 times less risky than Integral. It trades about 0.05 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.01 per unit of risk. If you would invest 1,673 in JBG SMITH Properties on September 3, 2024 and sell it today you would earn a total of 36.00 from holding JBG SMITH Properties or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Integral Ad Science
Performance |
| Timeline |
| JBG SMITH Properties |
| Integral Ad Science |
JBG SMITH and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Integral
The main advantage of trading using opposite JBG SMITH and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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