Correlation Between Franklin Real and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Franklin Real 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 Franklin Real and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Manning Napier Credit, you can compare the effects of market volatilities on Franklin Real 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 Franklin Real with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Manning Napier.
Diversification Opportunities for Franklin Real and Manning Napier
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Manning is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Manning Napier Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Credit and Franklin Real 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 Franklin Real Estate 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 Credit has no effect on the direction of Franklin Real i.e., Franklin Real and Manning Napier go up and down completely randomly.
Pair Corralation between Franklin Real and Manning Napier
Assuming the 90 days horizon Franklin Real Estate is expected to generate 4.9 times more return on investment than Manning Napier. However, Franklin Real is 4.9 times more volatile than Manning Napier Credit. It trades about 0.03 of its potential returns per unit of risk. Manning Napier Credit is currently generating about -0.08 per unit of risk. If you would invest 1,749 in Franklin Real Estate on September 12, 2024 and sell it today you would earn a total of 194.00 from holding Franklin Real Estate or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 15.91% |
| Values | Daily Returns |
Franklin Real Estate vs. Manning Napier Credit
Performance |
| Timeline |
| Franklin Real Estate |
| Manning Napier Credit |
Franklin Real and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Manning Napier
The main advantage of trading using opposite Franklin Real and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real 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.| Franklin Real vs. Guggenheim Risk Managed | Franklin Real vs. HUMANA INC | Franklin Real vs. Barloworld Ltd ADR | Franklin Real vs. Morningstar Unconstrained Allocation |
| Manning Napier vs. Dunham Real Estate | Manning Napier vs. Virtus Real Estate | Manning Napier vs. Franklin Real Estate | Manning Napier vs. Commonwealth 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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