Correlation Between Jamf Holding and Pegasystems

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

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

Diversification Opportunities for Jamf Holding and Pegasystems

0.71

Correlation Coefficient

Jamf Holding  Pegasystems

Poor diversification

The 3 months correlation between Jamf and Pegasystems is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems 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 Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of Jamf Holding i.e., Jamf Holding and Pegasystems go up and down completely randomly.

Pair Corralation between Jamf Holding and Pegasystems

Given the investment horizon of 90 days Jamf Holding is expected to generate 0.54 times more return on investment than Pegasystems. However, Jamf Holding is 1.87 times less risky than Pegasystems. It trades about -0.1 of its potential returns per unit of risk. Pegasystems is currently generating about -0.11 per unit of risk. If you would invest  1,420  in Jamf Holding on December 30, 2024 and sell it today you would lose (178.00) from holding Jamf Holding or give up 12.54% of portfolio value over 90 days.

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

Jamf Holding  vs.  Pegasystems

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.

Pegasystems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pegasystems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat 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 Pegasystems

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

The idea behind Jamf Holding and Pegasystems 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 Transaction History module to view history of all your transactions and understand their impact on performance.