Correlation Between Invesco Technology and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Invesco Technology 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 Invesco Technology and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Technology Fund and Manning Napier Pro Blend, you can compare the effects of market volatilities on Invesco Technology 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 Invesco Technology with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Technology and Manning Napier.
Diversification Opportunities for Invesco Technology and Manning Napier
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and Manning is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Technology Fund and Manning Napier Pro Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Pro and Invesco Technology 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 Invesco Technology Fund 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 Pro has no effect on the direction of Invesco Technology i.e., Invesco Technology and Manning Napier go up and down completely randomly.
Pair Corralation between Invesco Technology and Manning Napier
Assuming the 90 days horizon Invesco Technology Fund is expected to generate 3.32 times more return on investment than Manning Napier. However, Invesco Technology is 3.32 times more volatile than Manning Napier Pro Blend. It trades about 0.11 of its potential returns per unit of risk. Manning Napier Pro Blend is currently generating about 0.12 per unit of risk. If you would invest 6,646 in Invesco Technology Fund on October 24, 2024 and sell it today you would earn a total of 184.00 from holding Invesco Technology Fund or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Technology Fund vs. Manning Napier Pro Blend
Performance |
| Timeline |
| Invesco Technology |
| Manning Napier Pro |
Invesco Technology and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Technology and Manning Napier
The main advantage of trading using opposite Invesco Technology and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Technology 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.| Invesco Technology vs. Rbc Small Cap | Invesco Technology vs. Franklin Small Cap | Invesco Technology vs. Lebenthal Lisanti Small | Invesco Technology vs. Df Dent Small |
| Manning Napier vs. Blackrock Science Technology | Manning Napier vs. Columbia Global Technology | Manning Napier vs. Fidelity Advisor Technology | Manning Napier vs. Invesco Technology Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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