Correlation Between Manning Napier and Pro-blend(r) Conservative
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Pro-blend(r) Conservative 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(r) Conservative 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 Servative Term, you can compare the effects of market volatilities on Manning Napier and Pro-blend(r) Conservative 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(r) Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Pro-blend(r) Conservative.
Diversification Opportunities for Manning Napier and Pro-blend(r) Conservative
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manning and Pro-blend(r) is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Pro Blend Servative Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Conservative 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(r) Conservative. 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(r) Conservative has no effect on the direction of Manning Napier i.e., Manning Napier and Pro-blend(r) Conservative go up and down completely randomly.
Pair Corralation between Manning Napier and Pro-blend(r) Conservative
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 1.5 times more return on investment than Pro-blend(r) Conservative. However, Manning Napier is 1.5 times more volatile than Pro Blend Servative Term. It trades about 0.1 of its potential returns per unit of risk. Pro Blend Servative Term is currently generating about 0.09 per unit of risk. If you would invest 1,764 in Manning Napier Pro Blend on September 2, 2024 and sell it today you would earn a total of 318.00 from holding Manning Napier Pro Blend or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Pro Blend vs. Pro Blend Servative Term
Performance |
| Timeline |
| Manning Napier Pro |
| Pro-blend(r) Conservative |
Manning Napier and Pro-blend(r) Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Pro-blend(r) Conservative
The main advantage of trading using opposite Manning Napier and Pro-blend(r) Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Pro-blend(r) Conservative 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(r) Conservative will offset losses from the drop in Pro-blend(r) Conservative's long position.| Manning Napier vs. Barings Emerging Markets | Manning Napier vs. Doubleline Emerging Markets | Manning Napier vs. Pace International Emerging | Manning Napier vs. Ashmore Emerging Markets |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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