Correlation Between Manning Napier and Core Bond
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Core Bond 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 Core Bond 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 Core Bond Series, you can compare the effects of market volatilities on Manning Napier and Core Bond 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 Core Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Core Bond.
Diversification Opportunities for Manning Napier and Core Bond
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Manning and Core is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Core Bond Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Bond Series 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 Core Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Bond Series has no effect on the direction of Manning Napier i.e., Manning Napier and Core Bond go up and down completely randomly.
Pair Corralation between Manning Napier and Core Bond
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 0.76 times more return on investment than Core Bond. However, Manning Napier Pro Blend is 1.31 times less risky than Core Bond. It trades about 0.24 of its potential returns per unit of risk. Core Bond Series is currently generating about 0.14 per unit of risk. If you would invest 1,337 in Manning Napier Pro Blend on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Manning Napier Pro Blend or generate 1.42% 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. Core Bond Series
Performance |
| Timeline |
| Manning Napier Pro |
| Core Bond Series |
Manning Napier and Core Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Core Bond
The main advantage of trading using opposite Manning Napier and Core Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Core Bond 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 Core Bond will offset losses from the drop in Core Bond's long position.| Manning Napier vs. Large Cap Growth Profund | Manning Napier vs. Qs Large Cap | Manning Napier vs. Tax Managed Large Cap | Manning Napier vs. Jhancock Disciplined Value |
| Core Bond vs. Unconstrained Bond Series | Core Bond vs. Pro Blend Moderate Term | Core Bond vs. High Yield Bond | Core Bond vs. Overseas Series Class |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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