Correlation Between Jfrog and Jamf Holding

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

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

Diversification Opportunities for Jfrog and Jamf Holding

0.54

Correlation Coefficient

Jfrog  Jamf Holding

Very weak diversification

The 3 months correlation between Jfrog and Jamf is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding 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 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 Jfrog i.e., Jfrog and Jamf Holding go up and down completely randomly.

Pair Corralation between Jfrog and Jamf Holding

Given the investment horizon of 90 days Jfrog is expected to generate 1.26 times more return on investment than Jamf Holding. However, Jfrog is 1.26 times more volatile than Jamf Holding. It trades about 0.07 of its potential returns per unit of risk. Jamf Holding is currently generating about -0.07 per unit of risk. If you would invest  2,956  in Jfrog on December 27, 2024 and sell it today you would earn a total of  280.00  from holding Jfrog or generate 9.47% return on investment over 90 days.

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

Jfrog  vs.  Jamf Holding

Jfrog

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 5 (%) 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 April 2025.

Jamf Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jamf Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the Exchange Traded Fund stockholders.

Pair Trading with Jfrog and Jamf Holding

The main advantage of trading using opposite Jfrog and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog 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 Jfrog 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.