Correlation Between Jamf Holding and Jfrog
Can any of the company-specific risk be diversified away by investing in both Jamf Holding and Jfrog 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 Jamf Holding and Jfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamf Holding and Jfrog, you can compare the effects of market volatilities on Jamf Holding and Jfrog 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 Jamf Holding with a short position of Jfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamf Holding and Jfrog.
Diversification Opportunities for Jamf Holding and Jfrog
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jamf and Jfrog is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog and Jamf Holding 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 Jamf Holding are associated (or correlated) with Jfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jfrog has no effect on the direction of Jamf Holding i.e., Jamf Holding and Jfrog go up and down completely randomly.
Pair Corralation between Jamf Holding and Jfrog
Given the investment horizon of 90 days Jamf Holding is expected to under-perform the Jfrog. In addition to that, Jamf Holding is 1.09 times more volatile than Jfrog. It trades about -0.23 of its total potential returns per unit of risk. Jfrog is currently generating about 0.14 per unit of volatility. If you would invest 2,918 in Jfrog on September 1, 2024 and sell it today you would earn a total of 197.00 from holding Jfrog or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jamf Holding vs. Jfrog
Performance |
| Timeline |
| Jamf Holding |
| Jfrog |
Jamf Holding and Jfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamf Holding and Jfrog
The main advantage of trading using opposite Jamf Holding and Jfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamf Holding position performs unexpectedly, Jfrog 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 Jfrog will offset losses from the drop in Jfrog's long position.| 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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