Correlation Between Exela Technologies and Jfrog
Can any of the company-specific risk be diversified away by investing in both Exela Technologies 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 Exela Technologies and Jfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies Preferred and Jfrog, you can compare the effects of market volatilities on Exela Technologies 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 Exela Technologies with a short position of Jfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Jfrog.
Diversification Opportunities for Exela Technologies and Jfrog
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exela and Jfrog is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog and Exela Technologies 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 Exela Technologies Preferred 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 Exela Technologies i.e., Exela Technologies and Jfrog go up and down completely randomly.
Pair Corralation between Exela Technologies and Jfrog
Assuming the 90 days horizon Exela Technologies Preferred is expected to under-perform the Jfrog. In addition to that, Exela Technologies is 4.04 times more volatile than Jfrog. It trades about -0.44 of its total potential returns per unit of risk. Jfrog is currently generating about 0.13 per unit of volatility. If you would invest 2,932 in Jfrog on August 28, 2024 and sell it today you would earn a total of 201.00 from holding Jfrog or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Jfrog
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jfrog |
Exela Technologies and Jfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Jfrog
The main advantage of trading using opposite Exela Technologies and Jfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies 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.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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