Correlation Between Pekin Life and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Pekin Life 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 Pekin Life and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and JBG SMITH Properties, you can compare the effects of market volatilities on Pekin Life 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 Pekin Life with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and JBG SMITH.
Diversification Opportunities for Pekin Life and JBG SMITH
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pekin and JBG is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance 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 Pekin Life 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 Pekin Life Insurance 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 Pekin Life i.e., Pekin Life and JBG SMITH go up and down completely randomly.
Pair Corralation between Pekin Life and JBG SMITH
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.17 times more return on investment than JBG SMITH. However, Pekin Life Insurance is 6.0 times less risky than JBG SMITH. It trades about 0.06 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.04 per unit of risk. If you would invest 1,151 in Pekin Life Insurance on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Pekin Life Insurance or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pekin Life Insurance vs. JBG SMITH Properties
Performance |
| Timeline |
| Pekin Life Insurance |
| JBG SMITH Properties |
Pekin Life and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and JBG SMITH
The main advantage of trading using opposite Pekin Life and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life 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.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |