Correlation Between Kinsale Capital and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital and JBG SMITH 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 Kinsale Capital and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinsale Capital Group and JBG SMITH Properties, you can compare the effects of market volatilities on Kinsale Capital and JBG SMITH 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 Kinsale Capital with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and JBG SMITH.
Diversification Opportunities for Kinsale Capital and JBG SMITH
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinsale and JBG is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties and Kinsale Capital 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 Kinsale Capital Group are associated (or correlated) with JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Kinsale Capital i.e., Kinsale Capital and JBG SMITH go up and down completely randomly.
Pair Corralation between Kinsale Capital and JBG SMITH
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 1.11 times more return on investment than JBG SMITH. However, Kinsale Capital is 1.11 times more volatile than JBG SMITH Properties. It trades about 0.05 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.02 per unit of risk. If you would invest 47,431 in Kinsale Capital Group on September 4, 2024 and sell it today you would earn a total of 2,496 from holding Kinsale Capital Group or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. JBG SMITH Properties
Performance |
| Timeline |
| Kinsale Capital Group |
| JBG SMITH Properties |
Kinsale Capital and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and JBG SMITH
The main advantage of trading using opposite Kinsale Capital and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.| Kinsale Capital vs. Selective Insurance Group | Kinsale Capital vs. Horace Mann Educators | Kinsale Capital vs. Kemper | Kinsale Capital vs. ProAssurance |
| JBG SMITH vs. Boston Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Alexandria Real Estate | JBG SMITH vs. Vornado Realty Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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