Correlation Between Fidelity Series and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Fidelity 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 Fidelity 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 Fidelity Series Government and Manning Napier Callodine, you can compare the effects of market volatilities on Fidelity 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 Fidelity Series with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Manning Napier.
Diversification Opportunities for Fidelity Series and Manning Napier
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Manning is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government 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 Fidelity 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 Fidelity Series Government 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 Fidelity Series i.e., Fidelity Series and Manning Napier go up and down completely randomly.
Pair Corralation between Fidelity Series and Manning Napier
Assuming the 90 days horizon Fidelity Series is expected to generate 5.51 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Fidelity Series Government is 2.69 times less risky than Manning Napier. It trades about 0.07 of its potential returns per unit of risk. Manning Napier Callodine is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,339 in Manning Napier Callodine on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Manning Napier Callodine or generate 17.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Fidelity Series Government vs. Manning Napier Callodine
Performance |
| Timeline |
| Fidelity Series Gove |
| Manning Napier Callodine |
Fidelity Series and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Manning Napier
The main advantage of trading using opposite Fidelity Series and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity 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.| Fidelity Series vs. Fidelity Freedom 2015 | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Pennsylvania Municipal |
| Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term | Manning Napier vs. Pro Blend Extended Term | Manning Napier vs. Unconstrained Bond Series |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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