Correlation Between Jfrog and EMBARQ

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

By analyzing existing cross correlation between Jfrog and EMBARQ P 7995, you can compare the effects of market volatilities on Jfrog and EMBARQ 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 EMBARQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jfrog and EMBARQ.

Diversification Opportunities for Jfrog and EMBARQ

0.1

Correlation Coefficient

Jfrog  EMBARQ

Average diversification

The 3 months correlation between Jfrog and EMBARQ is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and EMBARQ P 7995 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMBARQ P 7995 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 EMBARQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMBARQ P 7995 has no effect on the direction of Jfrog i.e., Jfrog and EMBARQ go up and down completely randomly.

Pair Corralation between Jfrog and EMBARQ

Given the investment horizon of 90 days Jfrog is expected to under-perform the EMBARQ. But the stock apears to be less risky and, when comparing its historical volatility, Jfrog is 1.5 times less risky than EMBARQ. The stock trades about 0.0 of its potential returns per unit of risk. The EMBARQ P 7995 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,719  in EMBARQ P 7995 on October 25, 2024 and sell it today you would earn a total of  1,590  from holding EMBARQ P 7995 or generate 58.48% return on investment over 90 days.

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

Jfrog  vs.  EMBARQ P 7995

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.

EMBARQ P 7995

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EMBARQ P 7995 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, EMBARQ may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Jfrog and EMBARQ

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

The idea behind Jfrog and EMBARQ P 7995 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.