Correlation Between Manning Napier and Smallcap Fund
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Smallcap Fund 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 Smallcap Fund 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 Smallcap Fund Fka, you can compare the effects of market volatilities on Manning Napier and Smallcap Fund 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 Smallcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Smallcap Fund.
Diversification Opportunities for Manning Napier and Smallcap Fund
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manning and Smallcap is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and Smallcap Fund Fka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Fund Fka 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 Smallcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Fund Fka has no effect on the direction of Manning Napier i.e., Manning Napier and Smallcap Fund go up and down completely randomly.
Pair Corralation between Manning Napier and Smallcap Fund
Assuming the 90 days horizon Manning Napier Diversified is expected to generate 0.14 times more return on investment than Smallcap Fund. However, Manning Napier Diversified is 7.04 times less risky than Smallcap Fund. It trades about -0.11 of its potential returns per unit of risk. Smallcap Fund Fka is currently generating about -0.12 per unit of risk. If you would invest 1,044 in Manning Napier Diversified on October 30, 2024 and sell it today you would lose (8.00) from holding Manning Napier Diversified or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.44% |
| Values | Daily Returns |
Manning Napier Diversified vs. Smallcap Fund Fka
Performance |
| Timeline |
| Manning Napier Diver |
| Smallcap Fund Fka |
Manning Napier and Smallcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Smallcap Fund
The main advantage of trading using opposite Manning Napier and Smallcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Smallcap Fund 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 Smallcap Fund will offset losses from the drop in Smallcap Fund's long position.| Manning Napier vs. Ashmore Emerging Markets | Manning Napier vs. Eagle Mlp Strategy | Manning Napier vs. Jpmorgan Emerging Markets | Manning Napier vs. Angel Oak Multi Strategy |
| Smallcap Fund vs. Oklahoma College Savings | Smallcap Fund vs. Vy T Rowe | Smallcap Fund vs. Lord Abbett Diversified | Smallcap Fund vs. Global Diversified 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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