Correlation Between L Abbett and Manning Napier
Can any of the company-specific risk be diversified away by investing in both L Abbett 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 L Abbett and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Growth and Manning Napier Pro Blend, you can compare the effects of market volatilities on L Abbett 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 L Abbett with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Manning Napier.
Diversification Opportunities for L Abbett and Manning Napier
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LGLSX and Manning is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth 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 L Abbett 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 L Abbett 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 Pro has no effect on the direction of L Abbett i.e., L Abbett and Manning Napier go up and down completely randomly.
Pair Corralation between L Abbett and Manning Napier
Assuming the 90 days horizon L Abbett Growth is expected to generate 4.59 times more return on investment than Manning Napier. However, L Abbett is 4.59 times more volatile than Manning Napier Pro Blend. It trades about 0.44 of its potential returns per unit of risk. Manning Napier Pro Blend is currently generating about 0.23 per unit of risk. If you would invest 4,279 in L Abbett Growth on September 4, 2024 and sell it today you would earn a total of 522.00 from holding L Abbett Growth or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Growth vs. Manning Napier Pro Blend
Performance |
| Timeline |
| L Abbett Growth |
| Manning Napier Pro |
L Abbett and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Manning Napier
The main advantage of trading using opposite L Abbett and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett 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.| L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Focused | L Abbett vs. Floating Rate Fund |
| Manning Napier vs. Ab Select Equity | Manning Napier vs. The Hartford Equity | Manning Napier vs. Ultra Short Fixed Income | Manning Napier vs. Nationwide Global Equity |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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