Correlation Between Jamf Holding and SimilarWeb

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

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

Diversification Opportunities for Jamf Holding and SimilarWeb

-0.27

Correlation Coefficient

Jamf Holding  SimilarWeb

Very good diversification

The 3 months correlation between Jamf and SimilarWeb is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and SimilarWeb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimilarWeb 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 SimilarWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimilarWeb has no effect on the direction of Jamf Holding i.e., Jamf Holding and SimilarWeb go up and down completely randomly.

Pair Corralation between Jamf Holding and SimilarWeb

Given the investment horizon of 90 days Jamf Holding is expected to under-perform the SimilarWeb. In addition to that, Jamf Holding is 1.47 times more volatile than SimilarWeb. It trades about -0.29 of its total potential returns per unit of risk. SimilarWeb is currently generating about 0.19 per unit of volatility. If you would invest  700.00  in SimilarWeb on March 9, 2024 and sell it today you would earn a total of  69.00  from holding SimilarWeb or generate 9.86% return on investment over 90 days.

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

Jamf Holding  vs.  SimilarWeb

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 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.

SimilarWeb

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SimilarWeb has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jamf Holding and SimilarWeb

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

The idea behind Jamf Holding and SimilarWeb 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.