Correlation Between Manning Napier and Pro Blend
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Pro Blend 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 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 Pro Blend Extended Term, you can compare the effects of market volatilities on Manning Napier and Pro Blend 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Pro Blend.
Diversification Opportunities for Manning Napier and Pro Blend
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manning and Pro is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Blend 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 Diversified are associated (or correlated) with Pro Blend. 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 Extended has no effect on the direction of Manning Napier i.e., Manning Napier and Pro Blend go up and down completely randomly.
Pair Corralation between Manning Napier and Pro Blend
Assuming the 90 days horizon Manning Napier is expected to generate 3.79 times less return on investment than Pro Blend. But when comparing it to its historical volatility, Manning Napier Diversified is 2.75 times less risky than Pro Blend. It trades about 0.06 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 27, 2024 and sell it today you would earn a total of 362.00 from holding Pro Blend Extended Term or generate 21.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Diversified vs. Pro Blend Extended Term
Performance |
| Timeline |
| Manning Napier Diver |
| Pro Blend Extended |
Manning Napier and Pro Blend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Pro Blend
The main advantage of trading using opposite Manning Napier and Pro Blend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Pro Blend 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 will offset losses from the drop in Pro Blend's long position.| Manning Napier vs. Fidelity Advisor Financial | Manning Napier vs. Gabelli Global Financial | Manning Napier vs. Mesirow Financial Small | Manning Napier vs. Icon Financial Fund |
| Pro Blend vs. Tekla Healthcare Opportunities | Pro Blend vs. The Gabelli Healthcare | Pro Blend vs. Live Oak Health | Pro Blend vs. Alger Health Sciences |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |