Correlation Between JBG SMITH and WiMi Hologram

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

Diversification Opportunities for JBG SMITH and WiMi Hologram

0.39

Correlation Coefficient

JBG SMITH  WiMi Hologram

Weak diversification

The 3 months correlation between JBG and WiMi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud 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 WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of JBG SMITH i.e., JBG SMITH and WiMi Hologram go up and down completely randomly.

Pair Corralation between JBG SMITH and WiMi Hologram

Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.39 times more return on investment than WiMi Hologram. However, JBG SMITH Properties is 2.54 times less risky than WiMi Hologram. It trades about 0.16 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about 0.02 per unit of risk. If you would invest  1,540  in JBG SMITH Properties on September 15, 2024 and sell it today you would earn a total of  91.00  from holding JBG SMITH Properties or generate 5.91% return on investment over 90 days.

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

JBG SMITH Properties  vs.  WiMi Hologram Cloud

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.

WiMi Hologram Cloud

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with JBG SMITH and WiMi Hologram

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

The idea behind JBG SMITH Properties and WiMi Hologram Cloud 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.