Correlation Between Manning Napier and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Catalyst/millburn 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 Catalyst/millburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Manning Napier and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Catalyst/millburn.
Diversification Opportunities for Manning Napier and Catalyst/millburn
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manning and Catalyst/millburn is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Core and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Manning Napier i.e., Manning Napier and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Manning Napier and Catalyst/millburn
Assuming the 90 days horizon Manning Napier Core is expected to generate 1.09 times more return on investment than Catalyst/millburn. However, Manning Napier is 1.09 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.07 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.07 per unit of risk. If you would invest 806.00 in Manning Napier Core on October 24, 2024 and sell it today you would earn a total of 101.00 from holding Manning Napier Core or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Manning Napier Core vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Manning Napier Core |
| Catalystmillburn Hedge |
Manning Napier and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Catalyst/millburn
The main advantage of trading using opposite Manning Napier and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Manning Napier vs. Virtus Multi Strategy Target | Manning Napier vs. Eagle Mlp Strategy | Manning Napier vs. Eagle Mlp Strategy | Manning Napier vs. Catalystmillburn Hedge Strategy |
| Catalyst/millburn vs. Barings High Yield | Catalyst/millburn vs. Nuveen Strategic Municipal | Catalyst/millburn vs. Bbh Intermediate Municipal | Catalyst/millburn vs. Leader Short Term Bond |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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