Correlation Between Dassault Systemes and Jamf Holding
Can any of the company-specific risk be diversified away by investing in both Dassault Systemes and Jamf Holding 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 Dassault Systemes and Jamf Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dassault Systemes SE and Jamf Holding, you can compare the effects of market volatilities on Dassault Systemes and Jamf Holding 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 Dassault Systemes with a short position of Jamf Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dassault Systemes and Jamf Holding.
Diversification Opportunities for Dassault Systemes and Jamf Holding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dassault and Jamf is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dassault Systemes SE and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding and Dassault Systemes 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 Dassault Systemes SE are associated (or correlated) with Jamf Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamf Holding has no effect on the direction of Dassault Systemes i.e., Dassault Systemes and Jamf Holding go up and down completely randomly.
Pair Corralation between Dassault Systemes and Jamf Holding
Assuming the 90 days horizon Dassault Systemes SE is expected to generate 0.75 times more return on investment than Jamf Holding. However, Dassault Systemes SE is 1.33 times less risky than Jamf Holding. It trades about 0.18 of its potential returns per unit of risk. Jamf Holding is currently generating about -0.01 per unit of risk. If you would invest 3,429 in Dassault Systemes SE on September 13, 2024 and sell it today you would earn a total of 247.00 from holding Dassault Systemes SE or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dassault Systemes SE vs. Jamf Holding
Performance |
| Timeline |
| Dassault Systemes |
| Jamf Holding |
Dassault Systemes and Jamf Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dassault Systemes and Jamf Holding
The main advantage of trading using opposite Dassault Systemes and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dassault Systemes position performs unexpectedly, Jamf Holding 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 Jamf Holding will offset losses from the drop in Jamf Holding's long position.| Dassault Systemes vs. Sage Group PLC | Dassault Systemes vs. Xero Limited | Dassault Systemes vs. RenoWorks Software | Dassault Systemes vs. 01 Communique Laboratory |
| Jamf Holding vs. Paycor HCM | Jamf Holding vs. Enfusion | Jamf Holding vs. E2open Parent Holdings | Jamf Holding vs. Pegasystems |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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