Correlation Between JBG SMITH and Radcom
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Radcom 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 Radcom 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 Radcom, you can compare the effects of market volatilities on JBG SMITH and Radcom 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 Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Radcom.
Diversification Opportunities for JBG SMITH and Radcom
Excellent diversification
The 3 months correlation between JBG and Radcom is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of JBG SMITH i.e., JBG SMITH and Radcom go up and down completely randomly.
Pair Corralation between JBG SMITH and Radcom
Given the investment horizon of 90 days JBG SMITH is expected to generate 2.86 times less return on investment than Radcom. But when comparing it to its historical volatility, JBG SMITH Properties is 2.49 times less risky than Radcom. It trades about 0.11 of its potential returns per unit of risk. Radcom is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,074 in Radcom on September 13, 2024 and sell it today you would earn a total of 126.00 from holding Radcom or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Radcom
Performance |
| Timeline |
| JBG SMITH Properties |
| Radcom |
JBG SMITH and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Radcom
The main advantage of trading using opposite JBG SMITH and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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