Correlation Between JBG SMITH and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings, you can compare the effects of market volatilities on JBG SMITH and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Mativ Holdings.
Diversification Opportunities for JBG SMITH and Mativ Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JBG and Mativ is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of JBG SMITH i.e., JBG SMITH and Mativ Holdings go up and down completely randomly.
Pair Corralation between JBG SMITH and Mativ Holdings
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.56 times more return on investment than Mativ Holdings. However, JBG SMITH Properties is 1.8 times less risky than Mativ Holdings. It trades about 0.01 of its potential returns per unit of risk. Mativ Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,813 in JBG SMITH Properties on September 3, 2024 and sell it today you would lose (104.00) from holding JBG SMITH Properties or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Mativ Holdings
Performance |
| Timeline |
| JBG SMITH Properties |
| Mativ Holdings |
JBG SMITH and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Mativ Holdings
The main advantage of trading using opposite JBG SMITH and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |