Correlation Between Fidelity Managed and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Fidelity Managed 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 Managed 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 Managed Retirement and Manning Napier Overseas, you can compare the effects of market volatilities on Fidelity Managed 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 Managed with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and Manning Napier.
Diversification Opportunities for Fidelity Managed and Manning Napier
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Manning is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and Manning Napier Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Overseas and Fidelity Managed 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 Managed Retirement 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 Overseas has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and Manning Napier go up and down completely randomly.
Pair Corralation between Fidelity Managed and Manning Napier
Assuming the 90 days horizon Fidelity Managed is expected to generate 1.4 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Fidelity Managed Retirement is 1.99 times less risky than Manning Napier. It trades about 0.08 of its potential returns per unit of risk. Manning Napier Overseas is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,881 in Manning Napier Overseas on November 28, 2024 and sell it today you would earn a total of 590.00 from holding Manning Napier Overseas or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Managed Retirement vs. Manning Napier Overseas
Performance |
| Timeline |
| Fidelity Managed Ret |
| Manning Napier Overseas |
Fidelity Managed and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Managed and Manning Napier
The main advantage of trading using opposite Fidelity Managed and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed 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 Managed vs. Massmutual Premier Diversified | Fidelity Managed vs. Diversified Bond Fund | Fidelity Managed vs. Federated Hermes Conservative | Fidelity Managed vs. Harbor Diversified International |
| Manning Napier vs. Lord Abbett Diversified | Manning Napier vs. Wilmington Diversified Income | Manning Napier vs. Madison Diversified Income | Manning Napier vs. Blackrock Diversified Fixed |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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