Correlation Between Locorr Market and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Locorr Market 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 Locorr Market and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Market Trend and Manning Napier Disciplined, you can compare the effects of market volatilities on Locorr Market 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 Locorr Market with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Manning Napier.
Diversification Opportunities for Locorr Market and Manning Napier
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Locorr and Manning is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Manning Napier Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Disci and Locorr Market 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 Locorr Market Trend 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 Disci has no effect on the direction of Locorr Market i.e., Locorr Market and Manning Napier go up and down completely randomly.
Pair Corralation between Locorr Market and Manning Napier
Assuming the 90 days horizon Locorr Market Trend is expected to under-perform the Manning Napier. In addition to that, Locorr Market is 1.21 times more volatile than Manning Napier Disciplined. It trades about -0.01 of its total potential returns per unit of risk. Manning Napier Disciplined is currently generating about 0.08 per unit of volatility. If you would invest 743.00 in Manning Napier Disciplined on September 12, 2024 and sell it today you would earn a total of 177.00 from holding Manning Napier Disciplined or generate 23.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Locorr Market Trend vs. Manning Napier Disciplined
Performance |
| Timeline |
| Locorr Market Trend |
| Manning Napier Disci |
Locorr Market and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Manning Napier
The main advantage of trading using opposite Locorr Market and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market 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.| Locorr Market vs. Pimco Trends Managed | Locorr Market vs. Pimco Trends Managed | Locorr Market vs. SCOR PK | Locorr Market vs. Morningstar Unconstrained Allocation |
| Manning Napier vs. Barings Active Short | Manning Napier vs. Lord Abbett Short | Manning Napier vs. Prudential Short Duration | Manning Napier vs. Aqr Long Short 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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