Correlation Between DoubleVerify Holdings and Jfrog

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

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

Diversification Opportunities for DoubleVerify Holdings and Jfrog

0.37

Correlation Coefficient

DoubleVerify Holdings  Jfrog

Weak diversification

The 3 months correlation between DoubleVerify and Jfrog is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog and DoubleVerify Holdings 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 DoubleVerify 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 DoubleVerify Holdings i.e., DoubleVerify Holdings and Jfrog go up and down completely randomly.

Pair Corralation between DoubleVerify Holdings and Jfrog

Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to under-perform the Jfrog. In addition to that, DoubleVerify Holdings is 1.25 times more volatile than Jfrog. It trades about -0.06 of its total potential returns per unit of risk. Jfrog is currently generating about 0.0 per unit of volatility. If you would invest  4,172  in Jfrog on December 5, 2024 and sell it today you would lose (589.00) from holding Jfrog or give up 14.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

DoubleVerify Holdings  vs.  Jfrog

DoubleVerify Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days DoubleVerify Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Jfrog

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Jfrog reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DoubleVerify Holdings and Jfrog

The main advantage of trading using opposite DoubleVerify Holdings and Jfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleVerify Holdings 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 DoubleVerify 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.