Correlation Between Pro-blend(r) Moderate and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pro-blend(r) Moderate 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) Moderate 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 Moderate Term and Manning Napier Rainier, you can compare the effects of market volatilities on Pro-blend(r) Moderate 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) Moderate with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro-blend(r) Moderate and Manning Napier.
Diversification Opportunities for Pro-blend(r) Moderate and Manning Napier
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pro-blend(r) and Manning is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Manning Napier Rainier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Rainier and Pro-blend(r) Moderate 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 Moderate 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 Rainier has no effect on the direction of Pro-blend(r) Moderate i.e., Pro-blend(r) Moderate and Manning Napier go up and down completely randomly.
Pair Corralation between Pro-blend(r) Moderate and Manning Napier
Assuming the 90 days horizon Pro Blend Moderate Term is expected to generate 0.6 times more return on investment than Manning Napier. However, Pro Blend Moderate Term is 1.68 times less risky than Manning Napier. It trades about 0.1 of its potential returns per unit of risk. Manning Napier Rainier is currently generating about -0.01 per unit of risk. If you would invest 1,487 in Pro Blend Moderate Term on August 30, 2024 and sell it today you would earn a total of 13.00 from holding Pro Blend Moderate Term or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Manning Napier Rainier
Performance |
| Timeline |
| Pro-blend(r) Moderate |
| Manning Napier Rainier |
Pro-blend(r) Moderate and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro-blend(r) Moderate and Manning Napier
The main advantage of trading using opposite Pro-blend(r) Moderate and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro-blend(r) Moderate 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) Moderate vs. Ep Emerging Markets | Pro-blend(r) Moderate vs. Dodge Cox Emerging | Pro-blend(r) Moderate vs. Ab Bond Inflation | Pro-blend(r) Moderate vs. Rbc Emerging Markets |
| Manning Napier vs. Manning Napier Core | Manning Napier vs. Manning Napier Core | Manning Napier vs. Manning Napier Credit | Manning Napier vs. Manning Napier Callodine |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |