Correlation Between Jamf Holding and Thinkific Labs

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

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

Diversification Opportunities for Jamf Holding and Thinkific Labs

-0.71

Correlation Coefficient

Jamf Holding  Thinkific Labs

Pay attention - limited upside

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

Pair Corralation between Jamf Holding and Thinkific Labs

Given the investment horizon of 90 days Jamf Holding is expected to under-perform the Thinkific Labs. But the etf apears to be less risky and, when comparing its historical volatility, Jamf Holding is 1.31 times less risky than Thinkific Labs. The etf trades about -0.01 of its potential returns per unit of risk. The Thinkific Labs is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  138.00  in Thinkific Labs on October 11, 2024 and sell it today you would earn a total of  75.00  from holding Thinkific Labs or generate 54.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Jamf Holding  vs.  Thinkific Labs

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 February 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Thinkific Labs

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thinkific Labs are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Thinkific Labs may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Jamf Holding and Thinkific Labs

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

The idea behind Jamf Holding and Thinkific Labs 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.