Correlation Between Manning Napier and Vanguard Health
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Vanguard Health 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 Vanguard Health 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 Vanguard Health Care, you can compare the effects of market volatilities on Manning Napier and Vanguard Health 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 Vanguard Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Vanguard Health.
Diversification Opportunities for Manning Napier and Vanguard Health
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manning and Vanguard is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Vanguard Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Health Care 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 Vanguard Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Health Care has no effect on the direction of Manning Napier i.e., Manning Napier and Vanguard Health go up and down completely randomly.
Pair Corralation between Manning Napier and Vanguard Health
Assuming the 90 days horizon Manning Napier Callodine is expected to generate 1.16 times more return on investment than Vanguard Health. However, Manning Napier is 1.16 times more volatile than Vanguard Health Care. It trades about -0.03 of its potential returns per unit of risk. Vanguard Health Care is currently generating about -0.19 per unit of risk. If you would invest 1,424 in Manning Napier Callodine on October 24, 2024 and sell it today you would lose (45.00) from holding Manning Napier Callodine or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Manning Napier Callodine vs. Vanguard Health Care
Performance |
| Timeline |
| Manning Napier Callodine |
| Vanguard Health Care |
Manning Napier and Vanguard Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Vanguard Health
The main advantage of trading using opposite Manning Napier and Vanguard Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Vanguard Health 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 Vanguard Health will offset losses from the drop in Vanguard Health's long position.| Manning Napier vs. Vanguard Information Technology | Manning Napier vs. Global Technology Portfolio | Manning Napier vs. Technology Ultrasector Profund | Manning Napier vs. Dreyfus Technology Growth |
| Vanguard Health vs. Vanguard Energy Fund | Vanguard Health vs. Vanguard Dividend Growth | Vanguard Health vs. Vanguard Wellington Fund | Vanguard Health vs. Vanguard Capital Opportunity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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