Correlation Between Pro Blend and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pro Blend 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 Pro Blend and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Servative Term and Manning Napier Pro Blend, you can compare the effects of market volatilities on Pro Blend 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 Pro Blend with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Manning Napier.
Diversification Opportunities for Pro Blend and Manning Napier
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pro and Manning is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Servative Term 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 Pro Blend 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 Pro Blend Servative Term 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 Pro Blend i.e., Pro Blend and Manning Napier go up and down completely randomly.
Pair Corralation between Pro Blend and Manning Napier
Assuming the 90 days horizon Pro Blend Servative Term is expected to under-perform the Manning Napier. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pro Blend Servative Term is 1.86 times less risky than Manning Napier. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Manning Napier Pro Blend is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,056 in Manning Napier Pro Blend on August 26, 2024 and sell it today you would lose (4.00) from holding Manning Napier Pro Blend or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Servative Term vs. Manning Napier Pro Blend
Performance |
| Timeline |
| Pro Blend Servative |
| Manning Napier Pro |
Pro Blend and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Manning Napier
The main advantage of trading using opposite Pro Blend and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend 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.| Pro Blend vs. Pro Blend Moderate Term | Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Maximum Term | Pro Blend vs. James Balanced Golden |
| 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 |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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