Correlation Between Manning Napier and Rainier International
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Rainier International 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 Rainier International 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 Rainier International Discovery, you can compare the effects of market volatilities on Manning Napier and Rainier International 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 Rainier International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Rainier International.
Diversification Opportunities for Manning Napier and Rainier International
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manning and RAINIER is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Rainier International Discover in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rainier International 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 Rainier International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rainier International has no effect on the direction of Manning Napier i.e., Manning Napier and Rainier International go up and down completely randomly.
Pair Corralation between Manning Napier and Rainier International
Assuming the 90 days horizon Manning Napier Callodine is expected to generate 1.06 times more return on investment than Rainier International. However, Manning Napier is 1.06 times more volatile than Rainier International Discovery. It trades about 0.17 of its potential returns per unit of risk. Rainier International Discovery is currently generating about 0.02 per unit of risk. If you would invest 1,057 in Manning Napier Callodine on September 1, 2024 and sell it today you would earn a total of 524.00 from holding Manning Napier Callodine or generate 49.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.45% |
| Values | Daily Returns |
Manning Napier Callodine vs. Rainier International Discover
Performance |
| Timeline |
| Manning Napier Callodine |
| Rainier International |
Manning Napier and Rainier International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Rainier International
The main advantage of trading using opposite Manning Napier and Rainier International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Rainier International 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 Rainier International will offset losses from the drop in Rainier International's 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 |
| Rainier International vs. Manning Napier Callodine | Rainier International vs. Manning Napier Callodine | Rainier International vs. Manning Napier Callodine | Rainier International vs. Pro Blend Extended Term |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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