Correlation Between JBG SMITH and Lava Medtech
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Lava Medtech 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 Lava Medtech 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 Lava Medtech Acquisition, you can compare the effects of market volatilities on JBG SMITH and Lava Medtech 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 Lava Medtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Lava Medtech.
Diversification Opportunities for JBG SMITH and Lava Medtech
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JBG and Lava is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Lava Medtech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lava Medtech Acquisition 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 Lava Medtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lava Medtech Acquisition has no effect on the direction of JBG SMITH i.e., JBG SMITH and Lava Medtech go up and down completely randomly.
Pair Corralation between JBG SMITH and Lava Medtech
If you would invest 1,647 in JBG SMITH Properties on September 14, 2024 and sell it today you would lose (22.00) from holding JBG SMITH Properties or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
JBG SMITH Properties vs. Lava Medtech Acquisition
Performance |
| Timeline |
| JBG SMITH Properties |
| Lava Medtech Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JBG SMITH and Lava Medtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Lava Medtech
The main advantage of trading using opposite JBG SMITH and Lava Medtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Lava Medtech 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 Lava Medtech will offset losses from the drop in Lava Medtech's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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