Correlation Between JBG SMITH and NCR Voyix

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and NCR Voyix 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 NCR Voyix 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 NCR Voyix, you can compare the effects of market volatilities on JBG SMITH and NCR Voyix 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 NCR Voyix. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and NCR Voyix.

Diversification Opportunities for JBG SMITH and NCR Voyix

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between JBG and NCR is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and NCR Voyix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Voyix 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 NCR Voyix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Voyix has no effect on the direction of JBG SMITH i.e., JBG SMITH and NCR Voyix go up and down completely randomly.

Pair Corralation between JBG SMITH and NCR Voyix

Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.89 times more return on investment than NCR Voyix. However, JBG SMITH Properties is 1.12 times less risky than NCR Voyix. It trades about 0.06 of its potential returns per unit of risk. NCR Voyix is currently generating about -0.15 per unit of risk. If you would invest  1,518  in JBG SMITH Properties on October 22, 2024 and sell it today you would earn a total of  24.00  from holding JBG SMITH Properties or generate 1.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

JBG SMITH Properties  vs.  NCR Voyix

 Performance 
       Timeline  
JBG SMITH Properties 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
NCR Voyix 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in NCR Voyix are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, NCR Voyix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

JBG SMITH and NCR Voyix Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JBG SMITH and NCR Voyix

The main advantage of trading using opposite JBG SMITH and NCR Voyix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, NCR Voyix 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 NCR Voyix will offset losses from the drop in NCR Voyix's long position.
The idea behind JBG SMITH Properties and NCR Voyix 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.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities