Correlation Between Manning Napier and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Ab Bond 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 Ab Bond 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 Ab Bond Inflation, you can compare the effects of market volatilities on Manning Napier and Ab Bond 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 Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Ab Bond.
Diversification Opportunities for Manning Napier and Ab Bond
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manning and ABNTX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation 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 Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Manning Napier i.e., Manning Napier and Ab Bond go up and down completely randomly.
Pair Corralation between Manning Napier and Ab Bond
Assuming the 90 days horizon Manning Napier Callodine is expected to under-perform the Ab Bond. In addition to that, Manning Napier is 5.05 times more volatile than Ab Bond Inflation. It trades about -0.15 of its total potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.35 per unit of volatility. If you would invest 1,013 in Ab Bond Inflation on November 28, 2024 and sell it today you would earn a total of 14.00 from holding Ab Bond Inflation or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Callodine vs. Ab Bond Inflation
Performance |
| Timeline |
| Manning Napier Callodine |
| Ab Bond Inflation |
Manning Napier and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Ab Bond
The main advantage of trading using opposite Manning Napier and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| Manning Napier vs. Doubleline Global Bond | Manning Napier vs. Ab Global Bond | Manning Napier vs. Investec Global Franchise | Manning Napier vs. Morningstar Global Income |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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