Correlation Between JBG SMITH and BitFuFu

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

Diversification Opportunities for JBG SMITH and BitFuFu

0.19

Correlation Coefficient

JBG SMITH  BitFuFu

Average diversification

The 3 months correlation between JBG and BitFuFu is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and BitFuFu Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Class A 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 BitFuFu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Class A has no effect on the direction of JBG SMITH i.e., JBG SMITH and BitFuFu go up and down completely randomly.

Pair Corralation between JBG SMITH and BitFuFu

Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 0.59 times more return on investment than BitFuFu. However, JBG SMITH Properties is 1.69 times less risky than BitFuFu. It trades about 0.14 of its potential returns per unit of risk. BitFuFu Class A is currently generating about -0.01 per unit of risk. If you would invest  1,641  in JBG SMITH Properties on May 18, 2025 and sell it today you would earn a total of  332.00  from holding JBG SMITH Properties or generate 20.23% return on investment over 90 days.

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

JBG SMITH Properties  vs.  BitFuFu Class A

JBG SMITH Properties

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JBG SMITH Properties are ranked lower than 11 (%) 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.

BitFuFu Class A

Risk-Adjusted Performance

Weakest

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

Pair Trading with JBG SMITH and BitFuFu

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

The idea behind JBG SMITH Properties and BitFuFu Class A 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.