Correlation Between Pegasystems and Jamf Holding

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

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

Diversification Opportunities for Pegasystems and Jamf Holding

0.71

Correlation Coefficient

Pegasystems  Jamf Holding

Poor diversification

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

Pair Corralation between Pegasystems and Jamf Holding

Given the investment horizon of 90 days Pegasystems is expected to under-perform the Jamf Holding. In addition to that, Pegasystems is 1.87 times more volatile than Jamf Holding. It trades about -0.11 of its total potential returns per unit of risk. Jamf Holding is currently generating about -0.1 per unit of volatility. 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

Pegasystems  vs.  Jamf Holding

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.

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.

Pair Trading with Pegasystems and Jamf Holding

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

The idea behind Pegasystems and Jamf Holding 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.