Correlation Between Suburban Propane and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Suburban Propane 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 Suburban Propane and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and JBG SMITH Properties, you can compare the effects of market volatilities on Suburban Propane 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 Suburban Propane with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and JBG SMITH.
Diversification Opportunities for Suburban Propane and JBG SMITH
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suburban and JBG is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners 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 Suburban Propane 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 Suburban Propane Partners 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 Suburban Propane i.e., Suburban Propane and JBG SMITH go up and down completely randomly.
Pair Corralation between Suburban Propane and JBG SMITH
Considering the 90-day investment horizon Suburban Propane is expected to generate 5.71 times less return on investment than JBG SMITH. In addition to that, Suburban Propane is 1.07 times more volatile than JBG SMITH Properties. It trades about 0.02 of its total potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.1 per unit of volatility. 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 |
Suburban Propane Partners vs. JBG SMITH Properties
Performance |
| Timeline |
| Suburban Propane Partners |
| JBG SMITH Properties |
Suburban Propane and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and JBG SMITH
The main advantage of trading using opposite Suburban Propane and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane 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.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. Atmos Energy | Suburban Propane vs. One Gas | Suburban Propane vs. NiSource |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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