Correlation Between Jhancock Diversified and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified 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 Jhancock Diversified and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Manning Napier Rainier, you can compare the effects of market volatilities on Jhancock Diversified 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 Jhancock Diversified with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Manning Napier.
Diversification Opportunities for Jhancock Diversified and Manning Napier
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Manning is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Manning Napier Rainier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Rainier and Jhancock Diversified 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 Jhancock Diversified Macro 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 Rainier has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Manning Napier go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Manning Napier
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Manning Napier. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 1.39 times less risky than Manning Napier. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Manning Napier Rainier is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,156 in Manning Napier Rainier on September 3, 2024 and sell it today you would earn a total of 227.00 from holding Manning Napier Rainier or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Manning Napier Rainier
Performance |
| Timeline |
| Jhancock Diversified |
| Manning Napier Rainier |
Jhancock Diversified and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Manning Napier
The main advantage of trading using opposite Jhancock Diversified and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified 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.| Jhancock Diversified vs. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
| Manning Napier vs. Great West Real Estate | Manning Napier vs. Forum Real Estate | Manning Napier vs. Prudential Real Estate | Manning Napier vs. Amg Managers Centersquare |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges |