Correlation Between Massmutual Premier and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier 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 Massmutual Premier and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Diversified and Manning Napier Pro Blend, you can compare the effects of market volatilities on Massmutual Premier 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 Massmutual Premier with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Manning Napier.
Diversification Opportunities for Massmutual Premier and Manning Napier
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Manning is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified 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 Massmutual Premier 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 Massmutual Premier Diversified 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 Massmutual Premier i.e., Massmutual Premier and Manning Napier go up and down completely randomly.
Pair Corralation between Massmutual Premier and Manning Napier
Assuming the 90 days horizon Massmutual Premier is expected to generate 1.28 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Massmutual Premier Diversified is 1.13 times less risky than Manning Napier. It trades about 0.21 of its potential returns per unit of risk. Manning Napier Pro Blend is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,484 in Manning Napier Pro Blend on September 2, 2024 and sell it today you would earn a total of 28.00 from holding Manning Napier Pro Blend or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Manning Napier Pro Blend
Performance |
| Timeline |
| Massmutual Premier |
| Manning Napier Pro |
Massmutual Premier and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Manning Napier
The main advantage of trading using opposite Massmutual Premier and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier 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.| Massmutual Premier vs. Franklin Government Money | Massmutual Premier vs. Us Government Plus | Massmutual Premier vs. Lord Abbett Government | Massmutual Premier vs. Aig Government Money |
| Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term |
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.
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