Correlation Between Jfrog and TEXTRON
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By analyzing existing cross correlation between Jfrog and TEXTRON INC 4, you can compare the effects of market volatilities on Jfrog and TEXTRON 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 TEXTRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jfrog and TEXTRON.
Diversification Opportunities for Jfrog and TEXTRON
Good diversification
The 3 months correlation between Jfrog and TEXTRON is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and TEXTRON INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEXTRON INC 4 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 TEXTRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEXTRON INC 4 has no effect on the direction of Jfrog i.e., Jfrog and TEXTRON go up and down completely randomly.
Pair Corralation between Jfrog and TEXTRON
Given the investment horizon of 90 days Jfrog is expected to generate 5.06 times more return on investment than TEXTRON. However, Jfrog is 5.06 times more volatile than TEXTRON INC 4. It trades about 0.03 of its potential returns per unit of risk. TEXTRON INC 4 is currently generating about -0.2 per unit of risk. If you would invest 3,093 in Jfrog on October 9, 2024 and sell it today you would earn a total of 28.00 from holding Jfrog or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Jfrog vs. TEXTRON INC 4
Performance |
| Timeline |
| Jfrog |
| TEXTRON INC 4 |
Jfrog and TEXTRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jfrog and TEXTRON
The main advantage of trading using opposite Jfrog and TEXTRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog position performs unexpectedly, TEXTRON 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 TEXTRON will offset losses from the drop in TEXTRON's long position.The idea behind Jfrog and TEXTRON INC 4 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.| TEXTRON vs. Viemed Healthcare | TEXTRON vs. Merit Medical Systems | TEXTRON vs. Sonida Senior Living | TEXTRON vs. Siriuspoint |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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