Correlation Between Manning Napier and Virtus Convertible
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Virtus Convertible 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 Virtus Convertible 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 Virtus Convertible, you can compare the effects of market volatilities on Manning Napier and Virtus Convertible 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 Virtus Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Virtus Convertible.
Diversification Opportunities for Manning Napier and Virtus Convertible
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Manning and Virtus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Virtus Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Convertible 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 Virtus Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Convertible has no effect on the direction of Manning Napier i.e., Manning Napier and Virtus Convertible go up and down completely randomly.
Pair Corralation between Manning Napier and Virtus Convertible
Assuming the 90 days horizon Manning Napier Callodine is expected to generate 1.5 times more return on investment than Virtus Convertible. However, Manning Napier is 1.5 times more volatile than Virtus Convertible. It trades about 0.17 of its potential returns per unit of risk. Virtus Convertible is currently generating about 0.09 per unit of risk. If you would invest 1,056 in Manning Napier Callodine on September 3, 2024 and sell it today you would earn a total of 509.00 from holding Manning Napier Callodine or generate 48.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 58.95% |
| Values | Daily Returns |
Manning Napier Callodine vs. Virtus Convertible
Performance |
| Timeline |
| Manning Napier Callodine |
| Virtus Convertible |
Manning Napier and Virtus Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Virtus Convertible
The main advantage of trading using opposite Manning Napier and Virtus Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Virtus Convertible 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 Virtus Convertible will offset losses from the drop in Virtus Convertible's long position.| Manning Napier vs. Western Asset Diversified | Manning Napier vs. Calvert Conservative Allocation | Manning Napier vs. Pgim Conservative Retirement | Manning Napier vs. Fidelity Advisor Diversified |
| Virtus Convertible vs. Franklin Vertible Securities | Virtus Convertible vs. Franklin Vertible Securities | Virtus Convertible vs. Allianzgi Vertible Fund |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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