Correlation Between Jamf Holding and Castle Biosciences

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

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

Diversification Opportunities for Jamf Holding and Castle Biosciences

-0.1

Correlation Coefficient

Jamf Holding  Castle Biosciences

Good diversification

The 3 months correlation between Jamf and Castle is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jamf Holding and Castle Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castle Biosciences 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 Castle Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castle Biosciences has no effect on the direction of Jamf Holding i.e., Jamf Holding and Castle Biosciences go up and down completely randomly.

Pair Corralation between Jamf Holding and Castle Biosciences

Given the investment horizon of 90 days Jamf Holding is expected to under-perform the Castle Biosciences. But the etf apears to be less risky and, when comparing its historical volatility, Jamf Holding is 1.17 times less risky than Castle Biosciences. The etf trades about -0.24 of its potential returns per unit of risk. The Castle Biosciences is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  1,935  in Castle Biosciences on May 2, 2025 and sell it today you would lose (324.00) from holding Castle Biosciences or give up 16.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Jamf Holding  vs.  Castle Biosciences

Jamf Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jamf Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's primary indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Castle Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Castle Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Jamf Holding and Castle Biosciences

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

The idea behind Jamf Holding and Castle Biosciences 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.