Correlation Between Pro-blend(r) Maximum and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pro-blend(r) Maximum and Manning Napier 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 Pro-blend(r) Maximum and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Maximum Term and Manning Napier Credit, you can compare the effects of market volatilities on Pro-blend(r) Maximum and Manning Napier 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 Pro-blend(r) Maximum with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro-blend(r) Maximum and Manning Napier.
Diversification Opportunities for Pro-blend(r) Maximum and Manning Napier
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pro-blend(r) and Manning is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Maximum Term and Manning Napier Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Credit and Pro-blend(r) Maximum 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 Pro Blend Maximum Term are associated (or correlated) with Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Credit has no effect on the direction of Pro-blend(r) Maximum i.e., Pro-blend(r) Maximum and Manning Napier go up and down completely randomly.
Pair Corralation between Pro-blend(r) Maximum and Manning Napier
Assuming the 90 days horizon Pro Blend Maximum Term is expected to generate 2.01 times more return on investment than Manning Napier. However, Pro-blend(r) Maximum is 2.01 times more volatile than Manning Napier Credit. It trades about 0.09 of its potential returns per unit of risk. Manning Napier Credit is currently generating about 0.07 per unit of risk. If you would invest 2,051 in Pro Blend Maximum Term on August 26, 2024 and sell it today you would earn a total of 673.00 from holding Pro Blend Maximum Term or generate 32.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Maximum Term vs. Manning Napier Credit
Performance |
| Timeline |
| Pro-blend(r) Maximum |
| Manning Napier Credit |
Pro-blend(r) Maximum and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro-blend(r) Maximum and Manning Napier
The main advantage of trading using opposite Pro-blend(r) Maximum and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro-blend(r) Maximum position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Pro-blend(r) Maximum vs. Pro Blend Extended Term | Pro-blend(r) Maximum vs. Pro Blend Moderate Term | Pro-blend(r) Maximum vs. Pro Blend Servative Term | Pro-blend(r) Maximum vs. Pro Blend Maximum Term |
| Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term |
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.
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