Correlation Between Manning Napier and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Origin Emerging 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 Origin Emerging 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 Origin Emerging Markets, you can compare the effects of market volatilities on Manning Napier and Origin Emerging 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 Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Origin Emerging.
Diversification Opportunities for Manning Napier and Origin Emerging
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manning and Origin is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets 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 Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of Manning Napier i.e., Manning Napier and Origin Emerging go up and down completely randomly.
Pair Corralation between Manning Napier and Origin Emerging
Assuming the 90 days horizon Manning Napier is expected to generate 4.49 times less return on investment than Origin Emerging. But when comparing it to its historical volatility, Manning Napier Diversified is 5.25 times less risky than Origin Emerging. It trades about 0.04 of its potential returns per unit of risk. Origin Emerging Markets is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 931.00 in Origin Emerging Markets on October 16, 2024 and sell it today you would earn a total of 114.00 from holding Origin Emerging Markets or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Manning Napier Diversified vs. Origin Emerging Markets
Performance |
| Timeline |
| Manning Napier Diver |
| Origin Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Manning Napier and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Origin Emerging
The main advantage of trading using opposite Manning Napier and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging's long position.| Manning Napier vs. Bbh Intermediate Municipal | Manning Napier vs. Blrc Sgy Mnp | Manning Napier vs. Nuveen Strategic Municipal | Manning Napier vs. Aig Government Money |
| Origin Emerging vs. Manning Napier Diversified | Origin Emerging vs. Adams Diversified Equity | Origin Emerging vs. Tax Free Conservative Income | Origin Emerging vs. Guidepath Conservative Income |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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