Correlation Between TKO Group and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both TKO 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 TKO 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 TKO Group Holdings, and JBG SMITH Properties, you can compare the effects of market volatilities on TKO 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 TKO Group with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKO Group and JBG SMITH.
Diversification Opportunities for TKO Group and JBG SMITH
Good diversification
The 3 months correlation between TKO and JBG is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding TKO Group Holdings, 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 TKO 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 TKO Group Holdings, 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 TKO Group i.e., TKO Group and JBG SMITH go up and down completely randomly.
Pair Corralation between TKO Group and JBG SMITH
Considering the 90-day investment horizon TKO Group Holdings, is expected to generate 0.71 times more return on investment than JBG SMITH. However, TKO Group Holdings, is 1.4 times less risky than JBG SMITH. It trades about 0.43 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.13 per unit of risk. If you would invest 11,625 in TKO Group Holdings, on August 28, 2024 and sell it today you would earn a total of 2,054 from holding TKO Group Holdings, or generate 17.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TKO Group Holdings, vs. JBG SMITH Properties
Performance |
| Timeline |
| TKO Group Holdings, |
| JBG SMITH Properties |
TKO Group and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKO Group and JBG SMITH
The main advantage of trading using opposite TKO Group and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKO 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.| TKO Group vs. Cardinal Health | TKO Group vs. Meiwu Technology Co | TKO Group vs. Titan Machinery | TKO Group vs. Simon Property Group |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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