Correlation Between Bill and Jfrog

Can any of the company-specific risk be diversified away by investing in both Bill 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 Bill and Jfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bill Com Holdings and Jfrog, you can compare the effects of market volatilities on Bill 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 Bill with a short position of Jfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bill and Jfrog.

Diversification Opportunities for Bill and Jfrog

-0.39

Correlation Coefficient

Bill  Jfrog

Very good diversification

The 3 months correlation between Bill and Jfrog is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog and Bill 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 Bill Com Holdings 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 Bill i.e., Bill and Jfrog go up and down completely randomly.

Pair Corralation between Bill and Jfrog

Given the investment horizon of 90 days Bill Com Holdings is expected to under-perform the Jfrog. In addition to that, Bill is 2.26 times more volatile than Jfrog. It trades about -0.15 of its total potential returns per unit of risk. Jfrog is currently generating about 0.07 per unit of volatility. If you would invest  2,956  in Jfrog on December 27, 2024 and sell it today you would earn a total of  280.00  from holding Jfrog or generate 9.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bill Com Holdings  vs.  Jfrog

Bill Com Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bill Com Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Jfrog

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Jfrog may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Bill and Jfrog

The main advantage of trading using opposite Bill and Jfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bill 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.

The idea behind Bill Com Holdings and Jfrog 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.