Correlation Between Manning Napier and Equity Series
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Equity Series 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 Equity Series 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 Equity Series Class, you can compare the effects of market volatilities on Manning Napier and Equity Series 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 Equity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Equity Series.
Diversification Opportunities for Manning Napier and Equity Series
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Manning and Equity is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Equity Series Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Series Class 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 Equity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Series Class has no effect on the direction of Manning Napier i.e., Manning Napier and Equity Series go up and down completely randomly.
Pair Corralation between Manning Napier and Equity Series
Assuming the 90 days horizon Manning Napier Callodine is expected to generate 1.33 times more return on investment than Equity Series. However, Manning Napier is 1.33 times more volatile than Equity Series Class. It trades about 0.41 of its potential returns per unit of risk. Equity Series Class is currently generating about 0.37 per unit of risk. If you would invest 1,439 in Manning Napier Callodine on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Manning Napier Callodine or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Callodine vs. Equity Series Class
Performance |
| Timeline |
| Manning Napier Callodine |
| Equity Series Class |
Manning Napier and Equity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Equity Series
The main advantage of trading using opposite Manning Napier and Equity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Equity Series 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 Equity Series will offset losses from the drop in Equity Series' long position.| Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term | Manning Napier vs. Pro Blend Extended Term |
| Equity Series vs. Large Cap Fund | Equity Series vs. Wasatch Large Cap | Equity Series vs. Westcore Plus Bond | Equity Series vs. Aberdeen Global High |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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