Correlation Between Jfrog and Procore Technologies
Can any of the company-specific risk be diversified away by investing in both Jfrog and Procore Technologies 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 Procore Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jfrog and Procore Technologies, you can compare the effects of market volatilities on Jfrog and Procore Technologies 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 Procore Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jfrog and Procore Technologies.
Diversification Opportunities for Jfrog and Procore Technologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jfrog and Procore is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Procore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procore Technologies 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 Procore Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procore Technologies has no effect on the direction of Jfrog i.e., Jfrog and Procore Technologies go up and down completely randomly.
Pair Corralation between Jfrog and Procore Technologies
Given the investment horizon of 90 days Jfrog is expected to generate 1.35 times more return on investment than Procore Technologies. However, Jfrog is 1.35 times more volatile than Procore Technologies. It trades about 0.03 of its potential returns per unit of risk. Procore Technologies is currently generating about 0.04 per unit of risk. If you would invest 2,604 in Jfrog on September 1, 2024 and sell it today you would earn a total of 511.00 from holding Jfrog or generate 19.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jfrog vs. Procore Technologies
Performance |
| Timeline |
| Jfrog |
| Procore Technologies |
Jfrog and Procore Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jfrog and Procore Technologies
The main advantage of trading using opposite Jfrog and Procore Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog position performs unexpectedly, Procore Technologies 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 Procore Technologies will offset losses from the drop in Procore Technologies' long position.The idea behind Jfrog and Procore Technologies 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.| Procore Technologies vs. Paycor HCM | Procore Technologies vs. Clearwater Analytics Holdings | Procore Technologies vs. Alkami Technology | Procore Technologies vs. Jamf Holding |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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