Correlation Between JBG SMITH and LadRx
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and LadRx 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 LadRx 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 LadRx, you can compare the effects of market volatilities on JBG SMITH and LadRx 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 LadRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and LadRx.
Diversification Opportunities for JBG SMITH and LadRx
Poor diversification
The 3 months correlation between JBG and LadRx is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and LadRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LadRx 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 LadRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LadRx has no effect on the direction of JBG SMITH i.e., JBG SMITH and LadRx go up and down completely randomly.
Pair Corralation between JBG SMITH and LadRx
If you would invest 196.00 in LadRx on September 5, 2024 and sell it today you would earn a total of 0.00 from holding LadRx or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
JBG SMITH Properties vs. LadRx
Performance |
| Timeline |
| JBG SMITH Properties |
| LadRx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JBG SMITH and LadRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and LadRx
The main advantage of trading using opposite JBG SMITH and LadRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, LadRx 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 LadRx will offset losses from the drop in LadRx's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| LadRx vs. JBG SMITH Properties | LadRx vs. enVVeno Medical Corp | LadRx vs. Hooker Furniture | LadRx vs. Live Ventures |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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