Correlation Between Manning Napier and Unconstrained Bond
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Unconstrained 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 Unconstrained 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 Unconstrained Bond Series, you can compare the effects of market volatilities on Manning Napier and Unconstrained 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 Unconstrained Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Unconstrained Bond.
Diversification Opportunities for Manning Napier and Unconstrained Bond
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manning and Unconstrained is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Unconstrained Bond Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unconstrained 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 Unconstrained Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unconstrained Bond Series has no effect on the direction of Manning Napier i.e., Manning Napier and Unconstrained Bond go up and down completely randomly.
Pair Corralation between Manning Napier and Unconstrained Bond
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 1.46 times more return on investment than Unconstrained Bond. However, Manning Napier is 1.46 times more volatile than Unconstrained Bond Series. It trades about 0.1 of its potential returns per unit of risk. Unconstrained Bond Series is currently generating about 0.1 per unit of risk. If you would invest 1,171 in Manning Napier Pro Blend on August 30, 2024 and sell it today you would earn a total of 182.00 from holding Manning Napier Pro Blend or generate 15.54% 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. Unconstrained Bond Series
Performance |
| Timeline |
| Manning Napier Pro |
| Unconstrained Bond Series |
Manning Napier and Unconstrained Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Unconstrained Bond
The main advantage of trading using opposite Manning Napier and Unconstrained Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Unconstrained 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 Unconstrained Bond will offset losses from the drop in Unconstrained Bond'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 |
| Unconstrained Bond vs. Rationalpier 88 Convertible | Unconstrained Bond vs. Maryland Tax Free Bond | Unconstrained Bond vs. Calamos Dynamic Convertible | Unconstrained Bond vs. Bbh Intermediate Municipal |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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