Correlation Between Thinkific Labs and Jamf Holding

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

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

Diversification Opportunities for Thinkific Labs and Jamf Holding

-0.71

Correlation Coefficient

Thinkific Labs  Jamf Holding

Pay attention - limited upside

The 3 months correlation between Thinkific and Jamf is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Thinkific Labs and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding and Thinkific Labs 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 Thinkific Labs 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 Thinkific Labs i.e., Thinkific Labs and Jamf Holding go up and down completely randomly.

Pair Corralation between Thinkific Labs and Jamf Holding

Assuming the 90 days horizon Thinkific Labs is expected to generate 1.31 times more return on investment than Jamf Holding. However, Thinkific Labs is 1.31 times more volatile than Jamf Holding. It trades about 0.04 of its potential returns per unit of risk. Jamf Holding is currently generating about -0.01 per unit of risk. 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

Thinkific Labs  vs.  Jamf Holding

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.

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.

Pair Trading with Thinkific Labs and Jamf Holding

The main advantage of trading using opposite Thinkific Labs and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkific Labs 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 Thinkific Labs 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..