Correlation Between Ab All and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Ab All and Manning Napier 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 Ab All and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab All Market and Manning Napier Diversified, you can compare the effects of market volatilities on Ab All and Manning Napier 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 Ab All with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab All and Manning Napier.
Diversification Opportunities for Ab All and Manning Napier
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMTOX and Manning is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ab All Market and Manning Napier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Diver and Ab All 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 Ab All Market are associated (or correlated) with Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Diver has no effect on the direction of Ab All i.e., Ab All and Manning Napier go up and down completely randomly.
Pair Corralation between Ab All and Manning Napier
Assuming the 90 days horizon Ab All Market is expected to generate 3.25 times more return on investment than Manning Napier. However, Ab All is 3.25 times more volatile than Manning Napier Diversified. It trades about 0.25 of its potential returns per unit of risk. Manning Napier Diversified is currently generating about 0.1 per unit of risk. If you would invest 879.00 in Ab All Market on November 4, 2024 and sell it today you would earn a total of 21.00 from holding Ab All Market or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab All Market vs. Manning Napier Diversified
Performance |
| Timeline |
| Ab All Market |
| Manning Napier Diver |
Ab All and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab All and Manning Napier
The main advantage of trading using opposite Ab All and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab All position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.The idea behind Ab All Market and Manning Napier Diversified 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.| Manning Napier vs. Cref Inflation Linked Bond | Manning Napier vs. Asg Managed Futures | Manning Napier vs. Arrow Managed Futures | Manning Napier vs. Guggenheim Managed Futures |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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