Correlation Between JBG SMITH and Reliv International

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

0.22

Correlation Coefficient

JBG SMITH  Reliv International

Modest diversification

The 3 months correlation between JBG and Reliv is 0.22. 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

If you would invest  462.00  in Reliv International on September 10, 2024 and sell it today you would earn a total of  0.00  from holding Reliv International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

JBG SMITH Properties  vs.  Reliv International

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 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

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 latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.