Correlation Between JBG SMITH and Presidio Property
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Presidio Property 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 Presidio Property 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 Presidio Property Trust, you can compare the effects of market volatilities on JBG SMITH and Presidio Property 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 Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Presidio Property.
Diversification Opportunities for JBG SMITH and Presidio Property
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between JBG and Presidio is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of JBG SMITH i.e., JBG SMITH and Presidio Property go up and down completely randomly.
Pair Corralation between JBG SMITH and Presidio Property
Given the investment horizon of 90 days JBG SMITH is expected to generate 1.87 times less return on investment than Presidio Property. But when comparing it to its historical volatility, JBG SMITH Properties is 2.45 times less risky than Presidio Property. It trades about 0.01 of its potential returns per unit of risk. Presidio Property Trust is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 98.00 in Presidio Property Trust on November 27, 2024 and sell it today you would lose (32.00) from holding Presidio Property Trust or give up 32.65% 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. Presidio Property Trust
Performance |
| Timeline |
| JBG SMITH Properties |
| Presidio Property Trust |
JBG SMITH and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Presidio Property
The main advantage of trading using opposite JBG SMITH and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Mingzhu Logistics Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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