Correlation Between JBG SMITH and Agree Realty

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

Diversification Opportunities for JBG SMITH and Agree Realty

-0.55

Correlation Coefficient

JBG SMITH  Agree Realty

Excellent diversification

The 3 months correlation between JBG and Agree is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty 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 Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of JBG SMITH i.e., JBG SMITH and Agree Realty go up and down completely randomly.

Pair Corralation between JBG SMITH and Agree Realty

Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 2.18 times more return on investment than Agree Realty. However, JBG SMITH is 2.18 times more volatile than Agree Realty. It trades about 0.28 of its potential returns per unit of risk. Agree Realty is currently generating about -0.08 per unit of risk. If you would invest  1,467  in JBG SMITH Properties on May 3, 2025 and sell it today you would earn a total of  651.00  from holding JBG SMITH Properties or generate 44.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

JBG SMITH Properties  vs.  Agree Realty

JBG SMITH Properties

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JBG SMITH Properties are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, JBG SMITH unveiled solid returns over the last few months and may actually be approaching a breakup point.

Agree Realty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agree Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Agree Realty is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JBG SMITH and Agree Realty

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

The idea behind JBG SMITH Properties and Agree Realty 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.