Correlation Between JD Sports and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both JD Sports and Manhattan Associates 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 JD Sports and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Sports Fashion and Manhattan Associates, you can compare the effects of market volatilities on JD Sports and Manhattan Associates 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 JD Sports with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Manhattan Associates.
Diversification Opportunities for JD Sports and Manhattan Associates
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JDSPY and Manhattan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and JD Sports 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 JD Sports Fashion are associated (or correlated) with Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of JD Sports i.e., JD Sports and Manhattan Associates go up and down completely randomly.
Pair Corralation between JD Sports and Manhattan Associates
Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the Manhattan Associates. In addition to that, JD Sports is 1.86 times more volatile than Manhattan Associates. It trades about -0.08 of its total potential returns per unit of risk. Manhattan Associates is currently generating about -0.12 per unit of volatility. If you would invest 20,731 in Manhattan Associates on September 3, 2025 and sell it today you would lose (3,033) from holding Manhattan Associates or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. Manhattan Associates
Performance |
| Timeline |
| JD Sports Fashion |
| Manhattan Associates |
JD Sports and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Manhattan Associates
The main advantage of trading using opposite JD Sports and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Manhattan Associates 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 Manhattan Associates will offset losses from the drop in Manhattan Associates' long position.| JD Sports vs. Japan Display ADR | JD Sports vs. Lamar Advertising | JD Sports vs. Salesforce | JD Sports vs. Comtech Telecommunications Corp |
| Manhattan Associates vs. Chemtrade Logistics Income | Manhattan Associates vs. Home Loan Financial | Manhattan Associates vs. United Rentals | Manhattan Associates vs. H2O Retailing |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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