Correlation Between JBG SMITH and Reliv International

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

Diversification Opportunities for JBG SMITH and Reliv International

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between JBG and Reliv is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Reliv International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliv International 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 Reliv International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliv International has no effect on the direction of JBG SMITH i.e., JBG SMITH and Reliv International go up and down completely randomly.

Pair Corralation between JBG SMITH and Reliv International

Given the investment horizon of 90 days JBG SMITH is expected to generate 88.56 times less return on investment than Reliv International. But when comparing it to its historical volatility, JBG SMITH Properties is 2.02 times less risky than Reliv International. It trades about 0.0 of its potential returns per unit of risk. Reliv International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  371.00  in Reliv International on September 6, 2024 and sell it today you would earn a total of  91.00  from holding Reliv International or generate 24.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy7.27%
ValuesDaily Returns

JBG SMITH Properties  vs.  Reliv International

 Performance 
       Timeline  
JBG SMITH Properties 

Risk-Adjusted Performance

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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 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.
Reliv International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Reliv International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Reliv International is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

JBG SMITH and Reliv International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JBG SMITH and Reliv International

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

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