Correlation Between Manning Napier and Pace High
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Pace High 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 Pace High 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 Pace High Yield, you can compare the effects of market volatilities on Manning Napier and Pace High 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 Pace High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Pace High.
Diversification Opportunities for Manning Napier and Pace High
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manning and Pace is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Pace High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace High Yield 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 Pace High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace High Yield has no effect on the direction of Manning Napier i.e., Manning Napier and Pace High go up and down completely randomly.
Pair Corralation between Manning Napier and Pace High
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 2.9 times more return on investment than Pace High. However, Manning Napier is 2.9 times more volatile than Pace High Yield. It trades about 0.15 of its potential returns per unit of risk. Pace High Yield is currently generating about 0.33 per unit of risk. If you would invest 1,930 in Manning Napier Pro Blend on September 1, 2024 and sell it today you would earn a total of 152.00 from holding Manning Napier Pro Blend or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Manning Napier Pro Blend vs. Pace High Yield
Performance |
| Timeline |
| Manning Napier Pro |
| Pace High Yield |
Manning Napier and Pace High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Pace High
The main advantage of trading using opposite Manning Napier and Pace High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Pace High 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 Pace High will offset losses from the drop in Pace High's long position.| Manning Napier vs. Manning Napier Core | Manning Napier vs. Manning Napier Core | Manning Napier vs. Manning Napier Credit | Manning Napier vs. Manning Napier Callodine |
| Pace High vs. Aqr Sustainable Long Short | Pace High vs. Quantitative Longshort Equity | Pace High vs. Ab Select Longshort | Pace High vs. Calvert Short Duration |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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