Correlation Between J J and Mannatech Incorporated

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

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

Diversification Opportunities for J J and Mannatech Incorporated

0.19

Correlation Coefficient

J J  Mannatech Incorporated

Average diversification

The 3 months correlation between JJSF and Mannatech is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding J J Snack and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated and J J 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 J J Snack are associated (or correlated) with Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of J J i.e., J J and Mannatech Incorporated go up and down completely randomly.

Pair Corralation between J J and Mannatech Incorporated

Given the investment horizon of 90 days J J Snack is expected to under-perform the Mannatech Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, J J Snack is 2.49 times less risky than Mannatech Incorporated. The stock trades about -0.09 of its potential returns per unit of risk. The Mannatech Incorporated is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,011  in Mannatech Incorporated on May 5, 2025 and sell it today you would lose (191.00) from holding Mannatech Incorporated or give up 18.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

J J Snack  vs.  Mannatech Incorporated

J J Snack

Risk-Adjusted Performance

Very Weak

Over the last 90 days J J Snack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Mannatech Incorporated

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mannatech Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with J J and Mannatech Incorporated

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

The idea behind J J Snack and Mannatech Incorporated 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.