Correlation Between Jamf Holding and DHI

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

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

Diversification Opportunities for Jamf Holding and DHI

0.84

Correlation Coefficient

Jamf Holding  DHI

Very poor diversification

The 3 months correlation between Jamf and DHI is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and DHI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHI Group 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 DHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHI Group has no effect on the direction of Jamf Holding i.e., Jamf Holding and DHI go up and down completely randomly.

Pair Corralation between Jamf Holding and DHI

Given the investment horizon of 90 days Jamf Holding is expected to generate 0.33 times more return on investment than DHI. However, Jamf Holding is 3.06 times less risky than DHI. It trades about -0.08 of its potential returns per unit of risk. DHI Group is currently generating about -0.04 per unit of risk. If you would invest  1,466  in Jamf Holding on December 26, 2024 and sell it today you would lose (142.00) from holding Jamf Holding or give up 9.69% of portfolio value over 90 days.

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

Jamf Holding  vs.  DHI Group

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.

DHI Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days DHI Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jamf Holding and DHI

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

The idea behind Jamf Holding and DHI Group 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.