Correlation Between KraneShares Dynamic and Jamf Holding

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

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

Diversification Opportunities for KraneShares Dynamic and Jamf Holding

-0.46

Correlation Coefficient

KraneShares Dynamic  Jamf Holding

Very good diversification

The 3 months correlation between KraneShares and Jamf is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Dynamic Emerging and Jamf Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamf Holding and KraneShares Dynamic 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 KraneShares Dynamic Emerging 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 KraneShares Dynamic i.e., KraneShares Dynamic and Jamf Holding go up and down completely randomly.

Pair Corralation between KraneShares Dynamic and Jamf Holding

Considering the 90-day investment horizon KraneShares Dynamic is expected to generate 3.78 times less return on investment than Jamf Holding. But when comparing it to its historical volatility, KraneShares Dynamic Emerging is 1.75 times less risky than Jamf Holding. It trades about 0.09 of its potential returns per unit of risk. Jamf Holding is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,820  in Jamf Holding on January 31, 2024 and sell it today you would earn a total of  131.00  from holding Jamf Holding or generate 7.2% return on investment over 90 days.

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

KraneShares Dynamic Emerging  vs.  Jamf Holding

KraneShares Dynamic

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KraneShares Dynamic Emerging are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, KraneShares Dynamic may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Jamf Holding

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jamf Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, Jamf Holding may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with KraneShares Dynamic and Jamf Holding

The main advantage of trading using opposite KraneShares Dynamic and Jamf Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Dynamic 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 KraneShares Dynamic Emerging 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.