Correlation Between Trupanion and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Trupanion 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 Trupanion and JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trupanion and JBG SMITH Properties, you can compare the effects of market volatilities on Trupanion 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 Trupanion with a short position of JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trupanion and JBG SMITH.
Diversification Opportunities for Trupanion and JBG SMITH
Very good diversification
The 3 months correlation between Trupanion and JBG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Trupanion 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 Trupanion 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 Trupanion 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 Trupanion i.e., Trupanion and JBG SMITH go up and down completely randomly.
Pair Corralation between Trupanion and JBG SMITH
Given the investment horizon of 90 days Trupanion is expected to generate 1.22 times more return on investment than JBG SMITH. However, Trupanion is 1.22 times more volatile than JBG SMITH Properties. It trades about 0.06 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about -0.03 per unit of risk. If you would invest 5,241 in Trupanion on September 12, 2024 and sell it today you would earn a total of 158.00 from holding Trupanion or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Trupanion vs. JBG SMITH Properties
Performance |
| Timeline |
| Trupanion |
| JBG SMITH Properties |
Trupanion and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trupanion and JBG SMITH
The main advantage of trading using opposite Trupanion and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trupanion 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.| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment Corp |
| JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth | JBG SMITH vs. Kilroy Realty Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |