Correlation Between Jamf Holding and UBI Blockchain

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

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

Diversification Opportunities for Jamf Holding and UBI Blockchain

0.0

Correlation Coefficient

Jamf Holding  UBI Blockchain

Pay attention - limited upside

The 3 months correlation between Jamf and UBI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and UBI Blockchain Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBI Blockchain Internet 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 UBI Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBI Blockchain Internet has no effect on the direction of Jamf Holding i.e., Jamf Holding and UBI Blockchain go up and down completely randomly.

Pair Corralation between Jamf Holding and UBI Blockchain

Given the investment horizon of 90 days Jamf Holding is expected to under-perform the UBI Blockchain. But the etf apears to be less risky and, when comparing its historical volatility, Jamf Holding is 4.1 times less risky than UBI Blockchain. The etf trades about -0.01 of its potential returns per unit of risk. The UBI Blockchain Internet is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.31  in UBI Blockchain Internet on October 11, 2024 and sell it today you would lose (0.30) from holding UBI Blockchain Internet or give up 96.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Jamf Holding  vs.  UBI Blockchain Internet

Jamf Holding

Risk-Adjusted Performance

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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.

UBI Blockchain Internet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UBI Blockchain Internet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, UBI Blockchain is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jamf Holding and UBI Blockchain

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

The idea behind Jamf Holding and UBI Blockchain Internet 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.