Correlation Between Manning Napier and Pro Blend
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Pro Blend 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 Pro Blend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Pro Blend and Pro Blend Moderate Term, you can compare the effects of market volatilities on Manning Napier and Pro Blend 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 Pro Blend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Pro Blend.
Diversification Opportunities for Manning Napier and Pro Blend
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Manning and Pro is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Blend Moderate 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 Pro Blend are associated (or correlated) with Pro Blend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Blend Moderate has no effect on the direction of Manning Napier i.e., Manning Napier and Pro Blend go up and down completely randomly.
Pair Corralation between Manning Napier and Pro Blend
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 1.14 times more return on investment than Pro Blend. However, Manning Napier is 1.14 times more volatile than Pro Blend Moderate Term. It trades about 0.09 of its potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.08 per unit of risk. If you would invest 1,671 in Manning Napier Pro Blend on August 26, 2024 and sell it today you would earn a total of 381.00 from holding Manning Napier Pro Blend or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Pro Blend vs. Pro Blend Moderate Term
Performance |
| Timeline |
| Manning Napier Pro |
| Pro Blend Moderate |
Manning Napier and Pro Blend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Pro Blend
The main advantage of trading using opposite Manning Napier and Pro Blend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Pro Blend 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 Pro Blend will offset losses from the drop in Pro Blend's long position.| Manning Napier vs. Pro Blend Moderate Term | Manning Napier vs. Pro Blend Maximum Term | Manning Napier vs. Pro Blend Servative Term | Manning Napier vs. Madison Mid Cap |
| Pro Blend vs. Pro Blend Servative Term | Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Maximum Term | Pro Blend vs. Greenspring Fund Retail |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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