Correlation Between Jpmorgan Value and Manning Napier

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

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

Diversification Opportunities for Jpmorgan Value and Manning Napier

0.4

Correlation Coefficient

Jpmorgan Value  Manning Napier

Very weak diversification

The 3 months correlation between Jpmorgan and Manning is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Value Advantage and Manning Napier Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Overseas and Jpmorgan Value 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 Jpmorgan Value Advantage are associated (or correlated) with Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Overseas has no effect on the direction of Jpmorgan Value i.e., Jpmorgan Value and Manning Napier go up and down completely randomly.

Pair Corralation between Jpmorgan Value and Manning Napier

Assuming the 90 days horizon Jpmorgan Value is expected to generate 5.89 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Jpmorgan Value Advantage is 1.14 times less risky than Manning Napier. It trades about 0.02 of its potential returns per unit of risk. Manning Napier Overseas is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,244  in Manning Napier Overseas on December 27, 2024 and sell it today you would earn a total of  170.00  from holding Manning Napier Overseas or generate 5.24% return on investment over 90 days.

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

Jpmorgan Value Advantage  vs.  Manning Napier Overseas

Jpmorgan Value Advantage

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Value Advantage are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Manning Napier Overseas

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Overseas are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Manning Napier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jpmorgan Value and Manning Napier

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

The idea behind Jpmorgan Value Advantage and Manning Napier Overseas 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.