Correlation Between Chicago Atlantic and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Chicago Atlantic and JBG SMITH 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 Chicago Atlantic and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicago Atlantic BDC, and JBG SMITH Properties, you can compare the effects of market volatilities on Chicago Atlantic and JBG SMITH 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 Chicago Atlantic with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicago Atlantic and JBG SMITH.
Diversification Opportunities for Chicago Atlantic and JBG SMITH
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chicago and JBG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chicago Atlantic BDC, and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties and Chicago Atlantic 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 Chicago Atlantic BDC, are associated (or correlated) with JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Chicago Atlantic i.e., Chicago Atlantic and JBG SMITH go up and down completely randomly.
Pair Corralation between Chicago Atlantic and JBG SMITH
Given the investment horizon of 90 days Chicago Atlantic BDC, is expected to generate 0.78 times more return on investment than JBG SMITH. However, Chicago Atlantic BDC, is 1.28 times less risky than JBG SMITH. It trades about 0.38 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.05 per unit of risk. If you would invest 1,118 in Chicago Atlantic BDC, on November 29, 2024 and sell it today you would earn a total of 130.00 from holding Chicago Atlantic BDC, or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicago Atlantic BDC, vs. JBG SMITH Properties
Performance |
| Timeline |
| Chicago Atlantic BDC, |
| JBG SMITH Properties |
Chicago Atlantic and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicago Atlantic and JBG SMITH
The main advantage of trading using opposite Chicago Atlantic and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicago Atlantic position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.| Chicago Atlantic vs. Alaska Air Group | Chicago Atlantic vs. United Airlines Holdings | Chicago Atlantic vs. Allegiant Travel | Chicago Atlantic vs. United Parks Resorts |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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