Correlation Between JBG SMITH and Nyxoah
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Nyxoah 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 Nyxoah 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 Nyxoah, you can compare the effects of market volatilities on JBG SMITH and Nyxoah 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 Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Nyxoah.
Diversification Opportunities for JBG SMITH and Nyxoah
Modest diversification
The 3 months correlation between JBG and Nyxoah is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah 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 Nyxoah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyxoah has no effect on the direction of JBG SMITH i.e., JBG SMITH and Nyxoah go up and down completely randomly.
Pair Corralation between JBG SMITH and Nyxoah
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, JBG SMITH Properties is 1.66 times less risky than Nyxoah. The stock trades about -0.1 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 823.00 in Nyxoah on August 23, 2024 and sell it today you would earn a total of 5.00 from holding Nyxoah or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Nyxoah
Performance |
| Timeline |
| JBG SMITH Properties |
| Nyxoah |
JBG SMITH and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Nyxoah
The main advantage of trading using opposite JBG SMITH and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Nyxoah 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 Nyxoah will offset losses from the drop in Nyxoah's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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