Correlation Between Icon Information and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Icon Information 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 Icon Information and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Information Technology and Manning Napier Diversified, you can compare the effects of market volatilities on Icon Information 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 Icon Information with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Manning Napier.
Diversification Opportunities for Icon Information and Manning Napier
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icon and Manning is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology and Manning Napier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Diver and Icon Information 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 Icon Information Technology 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 Diver has no effect on the direction of Icon Information i.e., Icon Information and Manning Napier go up and down completely randomly.
Pair Corralation between Icon Information and Manning Napier
Assuming the 90 days horizon Icon Information Technology is expected to under-perform the Manning Napier. In addition to that, Icon Information is 5.24 times more volatile than Manning Napier Diversified. It trades about -0.35 of its total potential returns per unit of risk. Manning Napier Diversified is currently generating about 0.25 per unit of volatility. If you would invest 1,036 in Manning Napier Diversified on November 29, 2024 and sell it today you would earn a total of 10.00 from holding Manning Napier Diversified or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Information Technology vs. Manning Napier Diversified
Performance |
| Timeline |
| Icon Information Tec |
| Manning Napier Diver |
Icon Information and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Manning Napier
The main advantage of trading using opposite Icon Information and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information 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.| Icon Information vs. Stone Ridge Diversified | Icon Information vs. Prudential Core Conservative | Icon Information vs. Guidepath Conservative Income | Icon Information vs. Lord Abbett Diversified |
| Manning Napier vs. Jpmorgan Diversified Fund | Manning Napier vs. Jhancock Diversified Macro | Manning Napier vs. Harbor Diversified International | Manning Napier vs. Madison Diversified Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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