Correlation Between JBG SMITH and ENERGY
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By analyzing existing cross correlation between JBG SMITH Properties and ENERGY TRANSFER PARTNERS, you can compare the effects of market volatilities on JBG SMITH and ENERGY 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 ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and ENERGY.
Diversification Opportunities for JBG SMITH and ENERGY
Poor diversification
The 3 months correlation between JBG and ENERGY is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and ENERGY TRANSFER PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGY TRANSFER PARTNERS 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 ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGY TRANSFER PARTNERS has no effect on the direction of JBG SMITH i.e., JBG SMITH and ENERGY go up and down completely randomly.
Pair Corralation between JBG SMITH and ENERGY
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 5.71 times more return on investment than ENERGY. However, JBG SMITH is 5.71 times more volatile than ENERGY TRANSFER PARTNERS. It trades about -0.03 of its potential returns per unit of risk. ENERGY TRANSFER PARTNERS is currently generating about -0.19 per unit of risk. If you would invest 1,731 in JBG SMITH Properties on August 28, 2024 and sell it today you would lose (64.00) from holding JBG SMITH Properties or give up 3.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
JBG SMITH Properties vs. ENERGY TRANSFER PARTNERS
Performance |
Timeline |
JBG SMITH Properties |
ENERGY TRANSFER PARTNERS |
JBG SMITH and ENERGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JBG SMITH and ENERGY
The main advantage of trading using opposite JBG SMITH and ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, ENERGY 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 ENERGY will offset losses from the drop in ENERGY's long position.JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
ENERGY vs. Microbot Medical | ENERGY vs. RBC Bearings Incorporated | ENERGY vs. JBG SMITH Properties | ENERGY vs. Weyco Group |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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