Correlation Between Manning Napier and Manning Napier

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Can any of the company-specific risk be diversified away by investing in both Manning Napier 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 Manning Napier and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Callodine and Manning Napier Disciplined, you can compare the effects of market volatilities on Manning Napier 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 Manning Napier with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Manning Napier.

Diversification Opportunities for Manning Napier and Manning Napier

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Manning and Manning is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Manning Napier Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Disci 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 Callodine 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 Disci has no effect on the direction of Manning Napier i.e., Manning Napier and Manning Napier go up and down completely randomly.

Pair Corralation between Manning Napier and Manning Napier

Assuming the 90 days horizon Manning Napier Callodine is expected to under-perform the Manning Napier. In addition to that, Manning Napier is 1.55 times more volatile than Manning Napier Disciplined. It trades about -0.15 of its total potential returns per unit of risk. Manning Napier Disciplined is currently generating about -0.09 per unit of volatility. If you would invest  802.00  in Manning Napier Disciplined on November 28, 2024 and sell it today you would lose (10.00) from holding Manning Napier Disciplined or give up 1.25% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.45%
ValuesDaily Returns

Manning Napier Callodine  vs.  Manning Napier Disciplined

 Performance 
       Timeline  
Manning Napier Callodine 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Manning Napier Callodine has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
Manning Napier Disci 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Manning Napier Disciplined has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Manning Napier and Manning Napier Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Manning Napier and Manning Napier

The main advantage of trading using opposite Manning Napier and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier 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 Manning Napier Callodine and Manning Napier Disciplined 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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