Correlation Between Expensify and Jamf Holding

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

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

Diversification Opportunities for Expensify and Jamf Holding

-0.78

Correlation Coefficient

Expensify  Jamf Holding

Pay attention - limited upside

The 3 months correlation between Expensify and Jamf is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding and Expensify 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 Expensify 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 Expensify i.e., Expensify and Jamf Holding go up and down completely randomly.

Pair Corralation between Expensify and Jamf Holding

Given the investment horizon of 90 days Expensify is expected to generate 2.12 times more return on investment than Jamf Holding. However, Expensify is 2.12 times more volatile than Jamf Holding. It trades about 0.0 of its potential returns per unit of risk. Jamf Holding is currently generating about -0.01 per unit of risk. If you would invest  858.00  in Expensify on September 21, 2024 and sell it today you would lose (502.00) from holding Expensify or give up 58.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Expensify  vs.  Jamf Holding

Expensify

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Expensify are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Expensify showed solid returns over the last few months and may actually be approaching a breakup point.

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 Expensify and Jamf Holding

The main advantage of trading using opposite Expensify and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify 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 Expensify 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.