Correlation Between JBG SMITH and Stevanato Group
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Stevanato Group 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 Stevanato Group 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 Stevanato Group SpA, you can compare the effects of market volatilities on JBG SMITH and Stevanato Group 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 Stevanato Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Stevanato Group.
Diversification Opportunities for JBG SMITH and Stevanato Group
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between JBG and Stevanato is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA 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 Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of JBG SMITH i.e., JBG SMITH and Stevanato Group go up and down completely randomly.
Pair Corralation between JBG SMITH and Stevanato Group
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.49 times more return on investment than Stevanato Group. However, JBG SMITH Properties is 2.03 times less risky than Stevanato Group. It trades about 0.1 of its potential returns per unit of risk. Stevanato Group SpA is currently generating about 0.02 per unit of risk. If you would invest 1,407 in JBG SMITH Properties on September 1, 2024 and sell it today you would earn a total of 302.00 from holding JBG SMITH Properties or generate 21.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Stevanato Group SpA
Performance |
| Timeline |
| JBG SMITH Properties |
| Stevanato Group SpA |
JBG SMITH and Stevanato Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Stevanato Group
The main advantage of trading using opposite JBG SMITH and Stevanato Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Stevanato Group 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 Stevanato Group will offset losses from the drop in Stevanato Group'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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