Correlation Between Manning Napier and Virtus Multi
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Virtus Multi 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 Virtus Multi 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 Virtus Multi Strategy Target, you can compare the effects of market volatilities on Manning Napier and Virtus Multi 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 Virtus Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Virtus Multi.
Diversification Opportunities for Manning Napier and Virtus Multi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manning and Virtus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and Virtus Multi Strategy Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Multi Strategy 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 Virtus Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Multi Strategy has no effect on the direction of Manning Napier i.e., Manning Napier and Virtus Multi go up and down completely randomly.
Pair Corralation between Manning Napier and Virtus Multi
Assuming the 90 days horizon Manning Napier is expected to generate 1.81 times less return on investment than Virtus Multi. But when comparing it to its historical volatility, Manning Napier Diversified is 1.42 times less risky than Virtus Multi. It trades about 0.13 of its potential returns per unit of risk. Virtus Multi Strategy Target is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,798 in Virtus Multi Strategy Target on October 30, 2024 and sell it today you would earn a total of 12.00 from holding Virtus Multi Strategy Target or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Manning Napier Diversified vs. Virtus Multi Strategy Target
Performance |
| Timeline |
| Manning Napier Diver |
| Virtus Multi Strategy |
Manning Napier and Virtus Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Virtus Multi
The main advantage of trading using opposite Manning Napier and Virtus Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Virtus Multi 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 Virtus Multi will offset losses from the drop in Virtus Multi'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 |
| Virtus Multi vs. Inverse Emerging Markets | Virtus Multi vs. Saat Market Growth | Virtus Multi vs. Ashmore Emerging Markets | Virtus Multi vs. Ab All Market |
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 Stocks Directory module to find actively traded stocks across global markets.
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