Correlation Between Manning Napier and Jupai Holdings

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

By analyzing existing cross correlation between Manning Napier and Jupai Holdings, you can compare the effects of market volatilities on Manning Napier and Jupai Holdings 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 Jupai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Jupai Holdings.

Diversification Opportunities for Manning Napier and Jupai Holdings

0.0

Correlation Coefficient

Manning Napier  Jupai Holdings

Pay attention - limited upside

The 3 months correlation between Manning and Jupai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier and Jupai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupai Holdings 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 are associated (or correlated) with Jupai Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupai Holdings has no effect on the direction of Manning Napier i.e., Manning Napier and Jupai Holdings go up and down completely randomly.

Pair Corralation between Manning Napier and Jupai Holdings

If you would invest (100.00) in Jupai Holdings on January 25, 2024 and sell it today you would earn a total of  100.00  from holding Jupai Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Manning Napier  vs.  Jupai Holdings

Manning Napier

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manning Napier has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Manning Napier is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Jupai Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jupai Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Jupai Holdings is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Manning Napier and Jupai Holdings

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

The idea behind Manning Napier and Jupai Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.