Correlation Between National Retail and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and JBG SMITH Properties, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and JBG SMITH.
Diversification Opportunities for National Retail and JBG SMITH
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and JBG is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties 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 National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and JBG SMITH go up and down completely randomly.
Pair Corralation between National Retail and JBG SMITH
Considering the 90-day investment horizon National Retail Properties is expected to generate 0.61 times more return on investment than JBG SMITH. However, National Retail Properties is 1.64 times less risky than JBG SMITH. It trades about -0.15 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.12 per unit of risk. If you would invest 4,599 in National Retail Properties on August 26, 2024 and sell it today you would lose (233.00) from holding National Retail Properties or give up 5.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. JBG SMITH Properties
Performance |
| Timeline |
| National Retail Prop |
| JBG SMITH Properties |
National Retail and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and JBG SMITH
The main advantage of trading using opposite National Retail and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Site Centers Corp | National Retail vs. Inventrust Properties Corp | National Retail vs. Retail Opportunity Investments | National Retail vs. Netstreit Corp |
| JBG SMITH vs. Boston Properties | JBG SMITH vs. Alexandria Real Estate | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Piedmont Office Realty |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance |