Correlation Between JBG SMITH and Inception Growth
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Inception Growth 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 Inception Growth 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 Inception Growth Acquisition, you can compare the effects of market volatilities on JBG SMITH and Inception Growth 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 Inception Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Inception Growth.
Diversification Opportunities for JBG SMITH and Inception Growth
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBG and Inception is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Inception Growth Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inception Growth Acq 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 Inception Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inception Growth Acq has no effect on the direction of JBG SMITH i.e., JBG SMITH and Inception Growth go up and down completely randomly.
Pair Corralation between JBG SMITH and Inception Growth
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Inception Growth. In addition to that, JBG SMITH is 1.21 times more volatile than Inception Growth Acquisition. It trades about -0.06 of its total potential returns per unit of risk. Inception Growth Acquisition is currently generating about 0.05 per unit of volatility. If you would invest 1,154 in Inception Growth Acquisition on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Inception Growth Acquisition or generate 3.99% 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. Inception Growth Acquisition
Performance |
| Timeline |
| JBG SMITH Properties |
| Inception Growth Acq |
JBG SMITH and Inception Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Inception Growth
The main advantage of trading using opposite JBG SMITH and Inception Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Inception Growth 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 Inception Growth will offset losses from the drop in Inception Growth's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Inception Growth vs. Canada Goose Holdings | Inception Growth vs. PVH Corp | Inception Growth vs. Plexus Corp | Inception Growth vs. Celestica |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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