Correlation Between Jamf Holding and Jfrog

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

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

Diversification Opportunities for Jamf Holding and Jfrog

0.52

Correlation Coefficient

Jamf Holding  Jfrog

Very weak diversification

The 3 months correlation between Jamf and Jfrog is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog 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 Jfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jfrog has no effect on the direction of Jamf Holding i.e., Jamf Holding and Jfrog go up and down completely randomly.

Pair Corralation between Jamf Holding and Jfrog

Given the investment horizon of 90 days Jamf Holding is expected to generate 9.44 times less return on investment than Jfrog. But when comparing it to its historical volatility, Jamf Holding is 1.25 times less risky than Jfrog. It trades about 0.02 of its potential returns per unit of risk. Jfrog is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3,115  in Jfrog on November 29, 2024 and sell it today you would earn a total of  628.00  from holding Jfrog or generate 20.16% return on investment over 90 days.

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

Jamf Holding  vs.  Jfrog

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.

Jfrog

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 11 (%) 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.

Pair Trading with Jamf Holding and Jfrog

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

The idea behind Jamf Holding and Jfrog 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 Global Correlations module to find global opportunities by holding instruments from different markets.