Correlation Between Jfrog and Playstudios

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

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

Diversification Opportunities for Jfrog and Playstudios

0.08

Correlation Coefficient

Jfrog  Playstudios

Significant diversification

The 3 months correlation between Jfrog and Playstudios is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Playstudios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playstudios and Jfrog 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 Jfrog are associated (or correlated) with Playstudios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playstudios has no effect on the direction of Jfrog i.e., Jfrog and Playstudios go up and down completely randomly.

Pair Corralation between Jfrog and Playstudios

Given the investment horizon of 90 days Jfrog is expected to generate 0.62 times more return on investment than Playstudios. However, Jfrog is 1.6 times less risky than Playstudios. It trades about 0.15 of its potential returns per unit of risk. Playstudios is currently generating about -0.06 per unit of risk. If you would invest  3,439  in Jfrog on May 6, 2025 and sell it today you would earn a total of  753.00  from holding Jfrog or generate 21.9% return on investment over 90 days.

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

Jfrog  vs.  Playstudios

Jfrog

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Jfrog reported solid returns over the last few months and may actually be approaching a breakup point.

Playstudios

Risk-Adjusted Performance

Very Weak

Over the last 90 days Playstudios has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jfrog and Playstudios

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

The idea behind Jfrog and Playstudios 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.