Correlation Between Core Bond and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Core Bond and Manning Napier 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 Core Bond and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Bond Series and Manning Napier Callodine, you can compare the effects of market volatilities on Core Bond and Manning Napier 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 Core Bond with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Bond and Manning Napier.
Diversification Opportunities for Core Bond and Manning Napier
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Core and Manning is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Core Bond Series and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine and Core Bond 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 Core Bond Series are associated (or correlated) with Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Callodine has no effect on the direction of Core Bond i.e., Core Bond and Manning Napier go up and down completely randomly.
Pair Corralation between Core Bond and Manning Napier
Assuming the 90 days horizon Core Bond is expected to generate 6.12 times less return on investment than Manning Napier. In addition to that, Core Bond is 1.13 times more volatile than Manning Napier Callodine. It trades about 0.02 of its total potential returns per unit of risk. Manning Napier Callodine is currently generating about 0.13 per unit of volatility. If you would invest 1,192 in Manning Napier Callodine on September 12, 2024 and sell it today you would earn a total of 365.00 from holding Manning Napier Callodine or generate 30.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Bond Series vs. Manning Napier Callodine
Performance |
| Timeline |
| Core Bond Series |
| Manning Napier Callodine |
Core Bond and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Bond and Manning Napier
The main advantage of trading using opposite Core Bond and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Bond position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Core Bond vs. Rationalpier 88 Convertible | Core Bond vs. Gabelli Convertible And | Core Bond vs. Lord Abbett Convertible | Core Bond vs. Advent Claymore Convertible |
| Manning Napier vs. Goldman Sachs Real | Manning Napier vs. Virtus Real Estate | Manning Napier vs. Amg Managers Centersquare | Manning Napier vs. Redwood Real Estate |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |