Correlation Between Baillie Gifford and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford 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 Baillie Gifford and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Health and Manning Napier Callodine, you can compare the effects of market volatilities on Baillie Gifford 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 Baillie Gifford with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Manning Napier.
Diversification Opportunities for Baillie Gifford and Manning Napier
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baillie and Manning is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine and Baillie Gifford 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 Baillie Gifford Health 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 Callodine has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Manning Napier go up and down completely randomly.
Pair Corralation between Baillie Gifford and Manning Napier
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Manning Napier. In addition to that, Baillie Gifford is 1.6 times more volatile than Manning Napier Callodine. It trades about -0.03 of its total potential returns per unit of risk. Manning Napier Callodine is currently generating about 0.16 per unit of volatility. If you would invest 1,057 in Manning Napier Callodine on September 12, 2024 and sell it today you would earn a total of 491.00 from holding Manning Napier Callodine or generate 46.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.25% |
| Values | Daily Returns |
Baillie Gifford Health vs. Manning Napier Callodine
Performance |
| Timeline |
| Baillie Gifford Health |
| Manning Napier Callodine |
Baillie Gifford and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Manning Napier
The main advantage of trading using opposite Baillie Gifford and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford 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.| Baillie Gifford vs. Lord Abbett Diversified | Baillie Gifford vs. Federated Hermes Conservative | Baillie Gifford vs. Western Asset Diversified | Baillie Gifford vs. Global Diversified Income |
| Manning Napier vs. Health Biotchnology Portfolio | Manning Napier vs. Deutsche Health And | Manning Napier vs. Alphacentric Lifesci Healthcare | Manning Napier vs. Baillie Gifford Health |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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