Correlation Between Manning Napier and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Franklin Emerging 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 Manning Napier and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Core and Franklin Emerging Market, you can compare the effects of market volatilities on Manning Napier and Franklin Emerging 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 Manning Napier with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Franklin Emerging.
Diversification Opportunities for Manning Napier and Franklin Emerging
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manning and Franklin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Core and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Manning Napier 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 Manning Napier Core are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Manning Napier i.e., Manning Napier and Franklin Emerging go up and down completely randomly.
Pair Corralation between Manning Napier and Franklin Emerging
Assuming the 90 days horizon Manning Napier is expected to generate 4.32 times less return on investment than Franklin Emerging. In addition to that, Manning Napier is 1.45 times more volatile than Franklin Emerging Market. It trades about 0.06 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.36 per unit of volatility. If you would invest 1,160 in Franklin Emerging Market on November 4, 2024 and sell it today you would earn a total of 17.00 from holding Franklin Emerging Market or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Core vs. Franklin Emerging Market
Performance |
| Timeline |
| Manning Napier Core |
| Franklin Emerging Market |
Manning Napier and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Franklin Emerging
The main advantage of trading using opposite Manning Napier and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Franklin Emerging 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 Franklin Emerging will offset losses from the drop in Franklin Emerging's long position.| Manning Napier vs. Thrivent Natural Resources | Manning Napier vs. Icon Natural Resources | Manning Napier vs. Invesco Energy Fund | Manning Napier vs. Clearbridge Energy Mlp |
| Franklin Emerging vs. Icon Natural Resources | Franklin Emerging vs. Fidelity Advisor Energy | Franklin Emerging vs. Thrivent Natural Resources | Franklin Emerging vs. Goehring Rozencwajg Resources |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |