Correlation Between Urban Edge and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and JBG SMITH Properties, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and JBG SMITH.
Diversification Opportunities for Urban Edge and JBG SMITH
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and JBG is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge 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 Urban Edge 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 Urban Edge 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 Urban Edge i.e., Urban Edge and JBG SMITH go up and down completely randomly.
Pair Corralation between Urban Edge and JBG SMITH
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.73 times more return on investment than JBG SMITH. However, Urban Edge Properties is 1.36 times less risky than JBG SMITH. It trades about 0.07 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.0 per unit of risk. If you would invest 1,373 in Urban Edge Properties on August 26, 2024 and sell it today you would earn a total of 922.00 from holding Urban Edge Properties or generate 67.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. JBG SMITH Properties
Performance |
| Timeline |
| Urban Edge Properties |
| JBG SMITH Properties |
Urban Edge and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and JBG SMITH
The main advantage of trading using opposite Urban Edge and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| JBG SMITH vs. Boston Properties | JBG SMITH vs. Alexandria Real Estate | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Hudson Pacific Properties |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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