Correlation Between JBG SMITH and Viking Holdings

Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Viking Holdings 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 Viking Holdings 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 Viking Holdings, you can compare the effects of market volatilities on JBG SMITH and Viking Holdings 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 Viking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Viking Holdings.

Diversification Opportunities for JBG SMITH and Viking Holdings

-0.64

Correlation Coefficient

JBG SMITH  Viking Holdings

Excellent diversification

The 3 months correlation between JBG and Viking is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Viking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Holdings 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 Viking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Holdings has no effect on the direction of JBG SMITH i.e., JBG SMITH and Viking Holdings go up and down completely randomly.

Pair Corralation between JBG SMITH and Viking Holdings

Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Viking Holdings. In addition to that, JBG SMITH is 1.05 times more volatile than Viking Holdings. It trades about -0.1 of its total potential returns per unit of risk. Viking Holdings is currently generating about 0.16 per unit of volatility. If you would invest  3,960  in Viking Holdings on October 22, 2024 and sell it today you would earn a total of  811.00  from holding Viking Holdings or generate 20.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

JBG SMITH Properties  vs.  Viking Holdings

JBG SMITH Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JBG SMITH Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Viking Holdings

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Viking Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating forward indicators, Viking Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JBG SMITH and Viking Holdings

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

The idea behind JBG SMITH Properties and Viking Holdings 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.