Correlation Between Manning Napier and Pro-blend(r) Extended
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Pro-blend(r) Extended 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) Extended 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 Extended Term, you can compare the effects of market volatilities on Manning Napier and Pro-blend(r) Extended 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) Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Pro-blend(r) Extended.
Diversification Opportunities for Manning Napier and Pro-blend(r) Extended
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manning and Pro-blend(r) is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Extended 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) Extended. 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) Extended has no effect on the direction of Manning Napier i.e., Manning Napier and Pro-blend(r) Extended go up and down completely randomly.
Pair Corralation between Manning Napier and Pro-blend(r) Extended
Assuming the 90 days horizon Manning Napier is expected to generate 1.42 times less return on investment than Pro-blend(r) Extended. But when comparing it to its historical volatility, Manning Napier Pro Blend is 1.52 times less risky than Pro-blend(r) Extended. It trades about 0.1 of its potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,670 in Pro Blend Extended Term on August 30, 2024 and sell it today you would earn a total of 376.00 from holding Pro Blend Extended Term or generate 22.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Pro Blend vs. Pro Blend Extended Term
Performance |
| Timeline |
| Manning Napier Pro |
| Pro-blend(r) Extended |
Manning Napier and Pro-blend(r) Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Pro-blend(r) Extended
The main advantage of trading using opposite Manning Napier and Pro-blend(r) Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Pro-blend(r) Extended 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) Extended will offset losses from the drop in Pro-blend(r) Extended's long position.| Manning Napier vs. Fidelity Asset Manager | Manning Napier vs. HUMANA INC | Manning Napier vs. Aquagold International | Manning Napier vs. Barloworld Ltd ADR |
| Pro-blend(r) Extended vs. American Balanced Fund | Pro-blend(r) Extended vs. American Balanced Fund | Pro-blend(r) Extended vs. HUMANA INC | Pro-blend(r) Extended vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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