Correlation Between Amg River and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Amg River 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 Amg River and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Manning Napier Pro Blend, you can compare the effects of market volatilities on Amg River 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 Amg River with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Manning Napier.
Diversification Opportunities for Amg River and Manning Napier
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Manning is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Manning Napier Pro Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Pro and Amg River 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 Amg River Road 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 Pro has no effect on the direction of Amg River i.e., Amg River and Manning Napier go up and down completely randomly.
Pair Corralation between Amg River and Manning Napier
Assuming the 90 days horizon Amg River Road is expected to generate 4.09 times more return on investment than Manning Napier. However, Amg River is 4.09 times more volatile than Manning Napier Pro Blend. It trades about 0.24 of its potential returns per unit of risk. Manning Napier Pro Blend is currently generating about -0.07 per unit of risk. If you would invest 1,010 in Amg River Road on August 30, 2024 and sell it today you would earn a total of 109.00 from holding Amg River Road or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Amg River Road vs. Manning Napier Pro Blend
Performance |
| Timeline |
| Amg River Road |
| Manning Napier Pro |
Amg River and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Manning Napier
The main advantage of trading using opposite Amg River and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River 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.| Amg River vs. Amg River Road | Amg River vs. Champlain Small Pany | Amg River vs. Amg River Road | Amg River vs. Marsico Global Fund |
| Manning Napier vs. Pace Smallmedium Value | Manning Napier vs. Mid Cap Growth Profund | Manning Napier vs. Amg River Road | Manning Napier vs. Mutual Of America |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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