Correlation Between Jfrog and ANSYS

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

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

Diversification Opportunities for Jfrog and ANSYS

0.83

Correlation Coefficient

Jfrog  ANSYS

Very poor diversification

The 3 months correlation between Jfrog and ANSYS is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and Jfrog 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 Jfrog are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Jfrog i.e., Jfrog and ANSYS go up and down completely randomly.

Pair Corralation between Jfrog and ANSYS

Given the investment horizon of 90 days Jfrog is expected to generate 1.34 times more return on investment than ANSYS. However, Jfrog is 1.34 times more volatile than ANSYS Inc. It trades about 0.06 of its potential returns per unit of risk. ANSYS Inc is currently generating about 0.07 per unit of risk. If you would invest  2,812  in Jfrog on September 17, 2024 and sell it today you would earn a total of  204.00  from holding Jfrog or generate 7.25% return on investment over 90 days.

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

Jfrog  vs.  ANSYS Inc

Jfrog

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 4 (%) 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 January 2025.

ANSYS Inc

Risk-Adjusted Performance

5 of 100

Modest

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

Pair Trading with Jfrog and ANSYS

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

The idea behind Jfrog and ANSYS Inc 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.