Correlation Between Fidelity International and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Fidelity International 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 International 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 International Growth and Manning Napier Overseas, you can compare the effects of market volatilities on Fidelity International 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 International with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Manning Napier.
Diversification Opportunities for Fidelity International and Manning Napier
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Manning is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Growth 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 International 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 International Growth 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 International i.e., Fidelity International and Manning Napier go up and down completely randomly.
Pair Corralation between Fidelity International and Manning Napier
Assuming the 90 days horizon Fidelity International Growth is expected to generate 1.0 times more return on investment than Manning Napier. However, Fidelity International Growth is 1.0 times less risky than Manning Napier. It trades about 0.15 of its potential returns per unit of risk. Manning Napier Overseas is currently generating about 0.01 per unit of risk. If you would invest 2,051 in Fidelity International Growth on September 4, 2024 and sell it today you would earn a total of 52.00 from holding Fidelity International Growth or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity International Growth vs. Manning Napier Overseas
Performance |
| Timeline |
| Fidelity International |
| Manning Napier Overseas |
Fidelity International and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and Manning Napier
The main advantage of trading using opposite Fidelity International and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International 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.The idea behind Fidelity International Growth and Manning Napier Overseas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Manning Napier vs. Dunham Porategovernment Bond | Manning Napier vs. Us Government Securities | Manning Napier vs. Dreyfus Government Cash | Manning Napier vs. Blackrock Government Bond |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |