Correlation Between Jamf Holding and SimilarWeb

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

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

Diversification Opportunities for Jamf Holding and SimilarWeb

-0.88

Correlation Coefficient

Jamf Holding  SimilarWeb

Pay attention - limited upside

The 3 months correlation between Jamf and SimilarWeb is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and SimilarWeb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimilarWeb 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 SimilarWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimilarWeb has no effect on the direction of Jamf Holding i.e., Jamf Holding and SimilarWeb go up and down completely randomly.

Pair Corralation between Jamf Holding and SimilarWeb

Given the investment horizon of 90 days Jamf Holding is expected to generate 844.75 times less return on investment than SimilarWeb. But when comparing it to its historical volatility, Jamf Holding is 1.24 times less risky than SimilarWeb. It trades about 0.0 of its potential returns per unit of risk. SimilarWeb is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,190  in SimilarWeb on September 19, 2024 and sell it today you would earn a total of  177.00  from holding SimilarWeb or generate 14.87% return on investment over 90 days.

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

Jamf Holding  vs.  SimilarWeb

Jamf Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jamf Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's primary indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

SimilarWeb

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SimilarWeb are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SimilarWeb sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jamf Holding and SimilarWeb

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

The idea behind Jamf Holding and SimilarWeb 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.