Correlation Between E2open Parent and Jamf Holding

Can any of the company-specific risk be diversified away by investing in both E2open Parent and Jamf Holding 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 E2open Parent and Jamf Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E2open Parent Holdings and Jamf Holding, you can compare the effects of market volatilities on E2open Parent and Jamf Holding 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 E2open Parent with a short position of Jamf Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of E2open Parent and Jamf Holding.

Diversification Opportunities for E2open Parent and Jamf Holding

0.69

Correlation Coefficient

E2open Parent  Jamf Holding

Poor diversification

The 3 months correlation between E2open and Jamf is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding E2open Parent Holdings and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding and E2open Parent 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 E2open Parent Holdings are associated (or correlated) with Jamf Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamf Holding has no effect on the direction of E2open Parent i.e., E2open Parent and Jamf Holding go up and down completely randomly.

Pair Corralation between E2open Parent and Jamf Holding

Given the investment horizon of 90 days E2open Parent Holdings is expected to under-perform the Jamf Holding. In addition to that, E2open Parent is 1.13 times more volatile than Jamf Holding. It trades about -0.11 of its total potential returns per unit of risk. Jamf Holding is currently generating about -0.01 per unit of volatility. If you would invest  1,475  in Jamf Holding on September 20, 2024 and sell it today you would lose (16.00) from holding Jamf Holding or give up 1.08% of portfolio value over 90 days.

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

E2open Parent Holdings  vs.  Jamf Holding

E2open Parent Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E2open Parent Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Jamf Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jamf Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's primary indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Pair Trading with E2open Parent and Jamf Holding

The main advantage of trading using opposite E2open Parent and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E2open Parent position performs unexpectedly, Jamf Holding 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 Jamf Holding will offset losses from the drop in Jamf Holding's long position.

The idea behind E2open Parent Holdings and Jamf Holding 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.