Correlation Between Hartford Equity and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Hartford Equity 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 Hartford Equity and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Equity and Manning Napier Callodine, you can compare the effects of market volatilities on Hartford Equity 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 Hartford Equity with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Equity and Manning Napier.
Diversification Opportunities for Hartford Equity and Manning Napier
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Manning is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity 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 Hartford Equity 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 The Hartford Equity 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 Hartford Equity i.e., Hartford Equity and Manning Napier go up and down completely randomly.
Pair Corralation between Hartford Equity and Manning Napier
Assuming the 90 days horizon Hartford Equity is expected to generate 3.09 times less return on investment than Manning Napier. But when comparing it to its historical volatility, The Hartford Equity is 1.24 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 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,056 in Manning Napier Callodine on September 2, 2024 and sell it today you would earn a total of 516.00 from holding Manning Napier Callodine or generate 48.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.27% |
| Values | Daily Returns |
The Hartford Equity vs. Manning Napier Callodine
Performance |
| Timeline |
| Hartford Equity |
| Manning Napier Callodine |
Hartford Equity and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Equity and Manning Napier
The main advantage of trading using opposite Hartford Equity and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Equity 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.| Hartford Equity vs. The Hartford Dividend | Hartford Equity vs. The Hartford Total | Hartford Equity vs. The Hartford International | Hartford Equity vs. The Hartford Midcap |
| Manning Napier vs. Jhancock Disciplined Value | Manning Napier vs. Victory Strategic Allocation | Manning Napier vs. Qs Large Cap | Manning Napier vs. Touchstone Large Cap |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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