Correlation Between Manning Napier and High Yield
Can any of the company-specific risk be diversified away by investing in both Manning Napier and High Yield 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 High Yield 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 High Yield Bond, you can compare the effects of market volatilities on Manning Napier and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and High Yield.
Diversification Opportunities for Manning Napier and High Yield
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manning and High is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and High Yield Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Bond 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Bond has no effect on the direction of Manning Napier i.e., Manning Napier and High Yield go up and down completely randomly.
Pair Corralation between Manning Napier and High Yield
Assuming the 90 days horizon Manning Napier Callodine is expected to generate 5.96 times more return on investment than High Yield. However, Manning Napier is 5.96 times more volatile than High Yield Bond. It trades about 0.33 of its potential returns per unit of risk. High Yield Bond is currently generating about 0.1 per unit of risk. If you would invest 1,454 in Manning Napier Callodine on August 30, 2024 and sell it today you would earn a total of 120.00 from holding Manning Napier Callodine or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Callodine vs. High Yield Bond
Performance |
| Timeline |
| Manning Napier Callodine |
| High Yield Bond |
Manning Napier and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and High Yield
The main advantage of trading using opposite Manning Napier and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Manning Napier vs. Fidelity Series Government | Manning Napier vs. Us Government Securities | Manning Napier vs. Us Government Securities | Manning Napier vs. John Hancock Government |
| High Yield vs. Prudential High Yield | High Yield vs. HUMANA INC | High Yield vs. Aquagold International | High Yield vs. Barloworld Ltd ADR |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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