Correlation Between Jamf Holding and SimilarWeb
Can any of the company-specific risk be diversified away by investing in both Jamf Holding and SimilarWeb 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 SimilarWeb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamf Holding and SimilarWeb, you can compare the effects of market volatilities on Jamf Holding and SimilarWeb 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 SimilarWeb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamf Holding and SimilarWeb.
Diversification Opportunities for Jamf Holding and SimilarWeb
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jamf and SimilarWeb is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and SimilarWeb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimilarWeb 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 SimilarWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimilarWeb has no effect on the direction of Jamf Holding i.e., Jamf Holding and SimilarWeb go up and down completely randomly.
Pair Corralation between Jamf Holding and SimilarWeb
Given the investment horizon of 90 days Jamf Holding is expected to under-perform the SimilarWeb. But the etf apears to be less risky and, when comparing its historical volatility, Jamf Holding is 1.24 times less risky than SimilarWeb. The etf trades about -0.17 of its potential returns per unit of risk. The SimilarWeb is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 908.00 in SimilarWeb on August 28, 2024 and sell it today you would earn a total of 320.00 from holding SimilarWeb or generate 35.24% 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. SimilarWeb
Performance |
| Timeline |
| Jamf Holding |
| SimilarWeb |
Jamf Holding and SimilarWeb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamf Holding and SimilarWeb
The main advantage of trading using opposite Jamf Holding and SimilarWeb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamf Holding position performs unexpectedly, SimilarWeb 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 SimilarWeb will offset losses from the drop in SimilarWeb's long position.| Jamf Holding vs. SimilarWeb | Jamf Holding vs. Expensify | Jamf Holding vs. CS Disco LLC | Jamf Holding vs. Riskified |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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