Correlation Between LOCKHEED and JBG SMITH
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By analyzing existing cross correlation between LOCKHEED MARTIN P and JBG SMITH Properties, you can compare the effects of market volatilities on LOCKHEED 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 LOCKHEED with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOCKHEED and JBG SMITH.
Diversification Opportunities for LOCKHEED and JBG SMITH
Poor diversification
The 3 months correlation between LOCKHEED and JBG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding LOCKHEED MARTIN P 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 LOCKHEED 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 LOCKHEED MARTIN P 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 LOCKHEED i.e., LOCKHEED and JBG SMITH go up and down completely randomly.
Pair Corralation between LOCKHEED and JBG SMITH
Assuming the 90 days trading horizon LOCKHEED MARTIN P is expected to under-perform the JBG SMITH. But the bond apears to be less risky and, when comparing its historical volatility, LOCKHEED MARTIN P is 2.1 times less risky than JBG SMITH. The bond trades about -0.04 of its potential returns per unit of risk. The JBG SMITH Properties is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,713 in JBG SMITH Properties on August 31, 2024 and sell it today you would lose (37.00) from holding JBG SMITH Properties or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.83% |
| Values | Daily Returns |
LOCKHEED MARTIN P vs. JBG SMITH Properties
Performance |
| Timeline |
| LOCKHEED MARTIN P |
| JBG SMITH Properties |
LOCKHEED and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOCKHEED and JBG SMITH
The main advantage of trading using opposite LOCKHEED and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOCKHEED 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.| LOCKHEED vs. Uber Technologies | LOCKHEED vs. Meiwu Technology Co | LOCKHEED vs. Paysafe | LOCKHEED vs. NETGEAR |
| JBG SMITH vs. Boston Properties | JBG SMITH vs. Alexandria Real Estate | JBG SMITH vs. Hudson Pacific Properties | JBG SMITH vs. Office Properties Income |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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