Correlation Between JBG SMITH and Genfit

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

Diversification Opportunities for JBG SMITH and Genfit

0.4

Correlation Coefficient

JBG SMITH  Genfit

Very weak diversification

The 3 months correlation between JBG and Genfit is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of JBG SMITH i.e., JBG SMITH and Genfit go up and down completely randomly.

Pair Corralation between JBG SMITH and Genfit

Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Genfit. But the stock apears to be less risky and, when comparing its historical volatility, JBG SMITH Properties is 2.54 times less risky than Genfit. The stock trades about -0.1 of its potential returns per unit of risk. The Genfit is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  414.00  in Genfit on September 14, 2024 and sell it today you would lose (32.01) from holding Genfit or give up 7.73% of portfolio value over 90 days.

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

JBG SMITH Properties  vs.  Genfit

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 latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Genfit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Genfit is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JBG SMITH and Genfit

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

The idea behind JBG SMITH Properties and Genfit 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 Commodity Directory module to find actively traded commodities issued by global exchanges.