Correlation Between Manning Napier and American Beacon
Can any of the company-specific risk be diversified away by investing in both Manning Napier and American Beacon 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 American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Diversified and American Beacon Large, you can compare the effects of market volatilities on Manning Napier and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and American Beacon.
Diversification Opportunities for Manning Napier and American Beacon
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manning and American is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and American Beacon Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Large 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 Diversified are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Large has no effect on the direction of Manning Napier i.e., Manning Napier and American Beacon go up and down completely randomly.
Pair Corralation between Manning Napier and American Beacon
Assuming the 90 days horizon Manning Napier Diversified is expected to generate 0.09 times more return on investment than American Beacon. However, Manning Napier Diversified is 11.64 times less risky than American Beacon. It trades about -0.34 of its potential returns per unit of risk. American Beacon Large is currently generating about -0.3 per unit of risk. If you would invest 1,045 in Manning Napier Diversified on October 12, 2024 and sell it today you would lose (14.00) from holding Manning Napier Diversified or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Diversified vs. American Beacon Large
Performance |
| Timeline |
| Manning Napier Diver |
| American Beacon Large |
Manning Napier and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and American Beacon
The main advantage of trading using opposite Manning Napier and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Manning Napier vs. Virtus Multi Strategy Target | Manning Napier vs. Balanced Strategy Fund | Manning Napier vs. Inverse Nasdaq 100 Strategy | Manning Napier vs. Eagle Mlp Strategy |
| American Beacon vs. Guidepath Conservative Income | American Beacon vs. Manning Napier Diversified | American Beacon vs. Putnam Diversified Income | American Beacon vs. Federated Hermes Conservative |
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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