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
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manhattan and Jfrog is 0.58. 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 0.54 times more return on investment than Jfrog. However, Manhattan Associates is 1.85 times less risky than Jfrog. It trades about 0.07 of its potential returns per unit of risk. Jfrog is currently generating about 0.03 per unit of risk. If you would invest 18,550 in Manhattan Associates on August 31, 2024 and sell it today you would earn a total of 9,994 from holding Manhattan Associates or generate 53.88% 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
Performance |
| Timeline |
| Manhattan Associates |
| Jfrog |
Manhattan Associates and Jfrog Volatility Contrast
Predicted Return Density |
| Returns |
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.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |