Correlation Between JBG SMITH and CNA Financial
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and CNA Financial 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 CNA Financial 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 CNA Financial, you can compare the effects of market volatilities on JBG SMITH and CNA Financial 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 CNA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and CNA Financial.
Diversification Opportunities for JBG SMITH and CNA Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JBG and CNA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and CNA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNA Financial 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 CNA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNA Financial has no effect on the direction of JBG SMITH i.e., JBG SMITH and CNA Financial go up and down completely randomly.
Pair Corralation between JBG SMITH and CNA Financial
Given the investment horizon of 90 days JBG SMITH Properties is expected to generate 1.38 times more return on investment than CNA Financial. However, JBG SMITH is 1.38 times more volatile than CNA Financial. It trades about 0.09 of its potential returns per unit of risk. CNA Financial is currently generating about 0.1 per unit of risk. If you would invest 1,497 in JBG SMITH Properties on October 20, 2024 and sell it today you would earn a total of 45.00 from holding JBG SMITH Properties or generate 3.01% 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. CNA Financial
Performance |
| Timeline |
| JBG SMITH Properties |
| CNA Financial |
JBG SMITH and CNA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and CNA Financial
The main advantage of trading using opposite JBG SMITH and CNA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, CNA Financial 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 CNA Financial will offset losses from the drop in CNA Financial's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| CNA Financial vs. Selective Insurance Group | CNA Financial vs. Kemper | CNA Financial vs. Donegal Group B | CNA Financial vs. Argo Group International |
Check out your portfolio center.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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