Correlation Between Jfrog and FalconStor Software
Can any of the company-specific risk be diversified away by investing in both Jfrog and FalconStor Software 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 Jfrog and FalconStor Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jfrog and FalconStor Software, you can compare the effects of market volatilities on Jfrog and FalconStor Software 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 Jfrog with a short position of FalconStor Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jfrog and FalconStor Software.
Diversification Opportunities for Jfrog and FalconStor Software
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jfrog and FalconStor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and FalconStor Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FalconStor Software and Jfrog 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 Jfrog are associated (or correlated) with FalconStor Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FalconStor Software has no effect on the direction of Jfrog i.e., Jfrog and FalconStor Software go up and down completely randomly.
Pair Corralation between Jfrog and FalconStor Software
Given the investment horizon of 90 days Jfrog is expected to generate 20.5 times less return on investment than FalconStor Software. But when comparing it to its historical volatility, Jfrog is 5.95 times less risky than FalconStor Software. It trades about 0.03 of its potential returns per unit of risk. FalconStor Software is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 135.00 in FalconStor Software on August 31, 2024 and sell it today you would earn a total of 15.00 from holding FalconStor Software or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.29% |
| Values | Daily Returns |
Jfrog vs. FalconStor Software
Performance |
| Timeline |
| Jfrog |
| FalconStor Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jfrog and FalconStor Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jfrog and FalconStor Software
The main advantage of trading using opposite Jfrog and FalconStor Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog position performs unexpectedly, FalconStor Software 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 FalconStor Software will offset losses from the drop in FalconStor Software's long position.The idea behind Jfrog and FalconStor Software pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| FalconStor Software vs. Jfrog | FalconStor Software vs. Fastly Inc | FalconStor Software vs. Bill Com Holdings | FalconStor Software vs. Asana Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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