Correlation Between Jamf Holding and Alkami Technology

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

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

Diversification Opportunities for Jamf Holding and Alkami Technology

-0.08

Correlation Coefficient

Jamf Holding  Alkami Technology

Good diversification

The 3 months correlation between Jamf and Alkami is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and Alkami Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkami Technology and Jamf Holding 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 Jamf Holding are associated (or correlated) with Alkami Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkami Technology has no effect on the direction of Jamf Holding i.e., Jamf Holding and Alkami Technology go up and down completely randomly.

Pair Corralation between Jamf Holding and Alkami Technology

Given the investment horizon of 90 days Jamf Holding is expected to generate 0.79 times more return on investment than Alkami Technology. However, Jamf Holding is 1.26 times less risky than Alkami Technology. It trades about 0.02 of its potential returns per unit of risk. Alkami Technology is currently generating about -0.2 per unit of risk. If you would invest  1,460  in Jamf Holding on November 29, 2024 and sell it today you would earn a total of  17.00  from holding Jamf Holding or generate 1.16% return on investment over 90 days.

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

Jamf Holding  vs.  Alkami Technology

Jamf Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jamf Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, Jamf Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Alkami Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alkami Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jamf Holding and Alkami Technology

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

The idea behind Jamf Holding and Alkami Technology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.