Correlation Between Jfrog and Intrusion

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

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

Diversification Opportunities for Jfrog and Intrusion

0.07

Correlation Coefficient

Jfrog  Intrusion

Significant diversification

The 3 months correlation between Jfrog and Intrusion is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Jfrog i.e., Jfrog and Intrusion go up and down completely randomly.

Pair Corralation between Jfrog and Intrusion

Given the investment horizon of 90 days Jfrog is expected to generate 3.2 times less return on investment than Intrusion. But when comparing it to its historical volatility, Jfrog is 6.58 times less risky than Intrusion. It trades about 0.04 of its potential returns per unit of risk. Intrusion is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,540  in Intrusion on October 24, 2024 and sell it today you would lose (2,322) from holding Intrusion or give up 91.42% of portfolio value over 90 days.

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

Jfrog  vs.  Intrusion

Jfrog

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 10 (%) 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.

Intrusion

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jfrog and Intrusion

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

The idea behind Jfrog and Intrusion 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.