Correlation Between JBG SMITH and Lipocine
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Lipocine 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 Lipocine 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 Lipocine, you can compare the effects of market volatilities on JBG SMITH and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Lipocine.
Diversification Opportunities for JBG SMITH and Lipocine
Significant diversification
The 3 months correlation between JBG and Lipocine is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of JBG SMITH i.e., JBG SMITH and Lipocine go up and down completely randomly.
Pair Corralation between JBG SMITH and Lipocine
Given the investment horizon of 90 days JBG SMITH is expected to generate 13.94 times less return on investment than Lipocine. But when comparing it to its historical volatility, JBG SMITH Properties is 2.55 times less risky than Lipocine. It trades about 0.0 of its potential returns per unit of risk. Lipocine is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 680.00 in Lipocine on September 14, 2024 and sell it today you would lose (152.00) from holding Lipocine or give up 22.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Lipocine
Performance |
| Timeline |
| JBG SMITH Properties |
| Lipocine |
JBG SMITH and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Lipocine
The main advantage of trading using opposite JBG SMITH and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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