Correlation Between Stevanato Group and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Stevanato Group 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 Stevanato Group and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stevanato Group SpA and JBG SMITH Properties, you can compare the effects of market volatilities on Stevanato Group 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 Stevanato Group with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and JBG SMITH.
Diversification Opportunities for Stevanato Group and JBG SMITH
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stevanato and JBG is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA 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 Stevanato Group 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 Stevanato Group SpA 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 Stevanato Group i.e., Stevanato Group and JBG SMITH go up and down completely randomly.
Pair Corralation between Stevanato Group and JBG SMITH
Given the investment horizon of 90 days Stevanato Group SpA is expected to generate 1.85 times more return on investment than JBG SMITH. However, Stevanato Group is 1.85 times more volatile than JBG SMITH Properties. It trades about 0.08 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.09 per unit of risk. If you would invest 1,880 in Stevanato Group SpA on August 30, 2024 and sell it today you would earn a total of 120.00 from holding Stevanato Group SpA or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stevanato Group SpA vs. JBG SMITH Properties
Performance |
| Timeline |
| Stevanato Group SpA |
| JBG SMITH Properties |
Stevanato Group and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and JBG SMITH
The main advantage of trading using opposite Stevanato Group and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group 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.| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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