Correlation Between Manhattan Associates and Jfrog

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

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

Diversification Opportunities for Manhattan Associates and Jfrog

0.46

Correlation Coefficient

Manhattan Associates  Jfrog

Very weak diversification

The 3 months correlation between Manhattan and Jfrog is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog and Manhattan Associates 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 Manhattan Associates are associated (or correlated) with Jfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jfrog has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Jfrog go up and down completely randomly.

Pair Corralation between Manhattan Associates and Jfrog

Given the investment horizon of 90 days Manhattan Associates is expected to generate 0.53 times more return on investment than Jfrog. However, Manhattan Associates is 1.88 times less risky than Jfrog. It trades about 0.07 of its potential returns per unit of risk. Jfrog is currently generating about 0.0 per unit of risk. If you would invest  22,020  in Manhattan Associates on September 17, 2024 and sell it today you would earn a total of  7,797  from holding Manhattan Associates or generate 35.41% return on investment over 90 days.

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

Manhattan Associates  vs.  Jfrog

Manhattan Associates

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Manhattan Associates are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Manhattan Associates may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Jfrog

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Jfrog may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Manhattan Associates and Jfrog

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

The idea behind Manhattan Associates and Jfrog 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.