Correlation Between Riskified and Jamf Holding

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

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

Diversification Opportunities for Riskified and Jamf Holding

-0.14

Correlation Coefficient

Riskified  Jamf Holding

Good diversification

The 3 months correlation between Riskified and Jamf is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Riskified and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding and Riskified 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 Riskified 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 Riskified i.e., Riskified and Jamf Holding go up and down completely randomly.

Pair Corralation between Riskified and Jamf Holding

Given the investment horizon of 90 days Riskified is expected to generate 1.09 times more return on investment than Jamf Holding. However, Riskified is 1.09 times more volatile than Jamf Holding. It trades about 0.02 of its potential returns per unit of risk. Jamf Holding is currently generating about -0.01 per unit of risk. If you would invest  461.00  in Riskified on September 21, 2024 and sell it today you would earn a total of  8.00  from holding Riskified or generate 1.74% return on investment over 90 days.

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

Riskified  vs.  Jamf Holding

Riskified

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Riskified has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Riskified is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with Riskified and Jamf Holding

The main advantage of trading using opposite Riskified and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Riskified 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 Riskified 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.