Correlation Between Manning Napier and Jp Morgan

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

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

Diversification Opportunities for Manning Napier and Jp Morgan

0.63

Correlation Coefficient

Manning Napier  Jp Morgan

Poor diversification

The 3 months correlation between Manning and JTSQX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Core and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement and Manning Napier 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 Manning Napier Core are associated (or correlated) with Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Manning Napier i.e., Manning Napier and Jp Morgan go up and down completely randomly.

Pair Corralation between Manning Napier and Jp Morgan

Assuming the 90 days horizon Manning Napier is expected to generate 3.5 times less return on investment than Jp Morgan. But when comparing it to its historical volatility, Manning Napier Core is 1.98 times less risky than Jp Morgan. It trades about 0.1 of its potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,279  in Jp Morgan Smartretirement on May 5, 2025 and sell it today you would earn a total of  162.00  from holding Jp Morgan Smartretirement or generate 7.11% return on investment over 90 days.

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

Manning Napier Core  vs.  Jp Morgan Smartretirement

Manning Napier Core

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Core 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.

Jp Morgan Smartretirement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jp Morgan Smartretirement are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jp Morgan may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Manning Napier and Jp Morgan

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

The idea behind Manning Napier Core and Jp Morgan Smartretirement 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.