Correlation Between JBG SMITH and NI Holdings
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and NI Holdings 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 NI Holdings 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 NI Holdings, you can compare the effects of market volatilities on JBG SMITH and NI Holdings 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 NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and NI Holdings.
Diversification Opportunities for JBG SMITH and NI Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JBG and NODK is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings 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 NI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NI Holdings has no effect on the direction of JBG SMITH i.e., JBG SMITH and NI Holdings go up and down completely randomly.
Pair Corralation between JBG SMITH and NI Holdings
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the NI Holdings. In addition to that, JBG SMITH is 1.49 times more volatile than NI Holdings. It trades about -0.04 of its total potential returns per unit of risk. NI Holdings is currently generating about 0.24 per unit of volatility. If you would invest 1,573 in NI Holdings on September 12, 2024 and sell it today you would earn a total of 128.00 from holding NI Holdings or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. NI Holdings
Performance |
| Timeline |
| JBG SMITH Properties |
| NI Holdings |
JBG SMITH and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and NI Holdings
The main advantage of trading using opposite JBG SMITH and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, NI Holdings 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 NI Holdings will offset losses from the drop in NI Holdings' long position.| JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth | JBG SMITH vs. Kilroy Realty Corp |
| NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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