Correlation Between Overseas Series and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Overseas Series 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 Overseas Series and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Overseas Series Class and Manning Napier Equity, you can compare the effects of market volatilities on Overseas Series 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 Overseas Series with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Overseas Series and Manning Napier.
Diversification Opportunities for Overseas Series and Manning Napier
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Overseas and Manning is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Overseas Series Class and Manning Napier Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Equity and Overseas Series 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 Overseas Series Class 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 Equity has no effect on the direction of Overseas Series i.e., Overseas Series and Manning Napier go up and down completely randomly.
Pair Corralation between Overseas Series and Manning Napier
Assuming the 90 days horizon Overseas Series Class is expected to under-perform the Manning Napier. But the mutual fund apears to be less risky and, when comparing its historical volatility, Overseas Series Class is 1.11 times less risky than Manning Napier. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Manning Napier Equity is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,256 in Manning Napier Equity on August 26, 2024 and sell it today you would earn a total of 56.00 from holding Manning Napier Equity or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Overseas Series Class vs. Manning Napier Equity
Performance |
| Timeline |
| Overseas Series Class |
| Manning Napier Equity |
Overseas Series and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Overseas Series and Manning Napier
The main advantage of trading using opposite Overseas Series and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Overseas Series 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.| Overseas Series vs. Manning Napier Callodine | Overseas Series vs. Manning Napier Callodine | Overseas Series vs. Manning Napier Callodine | Overseas Series vs. Pro Blend Extended Term |
| Manning Napier vs. Large Cap Fund | Manning Napier vs. Wasatch Large Cap | Manning Napier vs. Westcore Plus Bond | Manning Napier 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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