Correlation Between JBG SMITH and TCJH Old

Can any of the company-specific risk be diversified away by investing in both JBG SMITH and TCJH Old 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 JBG SMITH and TCJH Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JBG SMITH Properties and TCJH Old, you can compare the effects of market volatilities on JBG SMITH and TCJH Old 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 JBG SMITH with a short position of TCJH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and TCJH Old.

Diversification Opportunities for JBG SMITH and TCJH Old

0.0

Correlation Coefficient

JBG SMITH  TCJH Old

Pay attention - limited upside

The 3 months correlation between JBG and TCJH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and TCJH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCJH Old and JBG SMITH 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 JBG SMITH Properties are associated (or correlated) with TCJH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCJH Old has no effect on the direction of JBG SMITH i.e., JBG SMITH and TCJH Old go up and down completely randomly.

Pair Corralation between JBG SMITH and TCJH Old

If you would invest  1,535  in JBG SMITH Properties on December 26, 2024 and sell it today you would earn a total of  37.00  from holding JBG SMITH Properties or generate 2.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JBG SMITH Properties  vs.  TCJH Old

JBG SMITH Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JBG SMITH Properties are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, JBG SMITH is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

TCJH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days TCJH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward-looking indicators, TCJH Old is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with JBG SMITH and TCJH Old

The main advantage of trading using opposite JBG SMITH and TCJH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, TCJH Old 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 TCJH Old will offset losses from the drop in TCJH Old's long position.

The idea behind JBG SMITH Properties and TCJH Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.