Correlation Between JBG SMITH and IX Acquisition

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and IX Acquisition 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 IX Acquisition 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 IX Acquisition Corp, you can compare the effects of market volatilities on JBG SMITH and IX Acquisition 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 IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and IX Acquisition.

Diversification Opportunities for JBG SMITH and IX Acquisition

-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between JBG and IXAQU is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of JBG SMITH i.e., JBG SMITH and IX Acquisition go up and down completely randomly.

Pair Corralation between JBG SMITH and IX Acquisition

If you would invest  1,141  in IX Acquisition Corp on September 12, 2024 and sell it today you would earn a total of  0.00  from holding IX Acquisition Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

JBG SMITH Properties  vs.  IX Acquisition Corp

 Performance 
       Timeline  
JBG SMITH Properties 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JBG SMITH Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
IX Acquisition Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days IX Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IX Acquisition is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

JBG SMITH and IX Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JBG SMITH and IX Acquisition

The main advantage of trading using opposite JBG SMITH and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.
The idea behind JBG SMITH Properties and IX Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance