Correlation Between Manning Napier and Pro-blend(r) Moderate
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Pro-blend(r) Moderate 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 Pro-blend(r) Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Pro Blend and Pro Blend Moderate Term, you can compare the effects of market volatilities on Manning Napier and Pro-blend(r) Moderate 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 Pro-blend(r) Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Pro-blend(r) Moderate.
Diversification Opportunities for Manning Napier and Pro-blend(r) Moderate
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Manning and Pro-blend(r) is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Moderate 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 Pro Blend are associated (or correlated) with Pro-blend(r) Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Moderate has no effect on the direction of Manning Napier i.e., Manning Napier and Pro-blend(r) Moderate go up and down completely randomly.
Pair Corralation between Manning Napier and Pro-blend(r) Moderate
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 0.99 times more return on investment than Pro-blend(r) Moderate. However, Manning Napier Pro Blend is 1.01 times less risky than Pro-blend(r) Moderate. It trades about 0.1 of its potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.09 per unit of risk. If you would invest 1,308 in Manning Napier Pro Blend on September 2, 2024 and sell it today you would earn a total of 204.00 from holding Manning Napier Pro Blend or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Pro Blend vs. Pro Blend Moderate Term
Performance |
| Timeline |
| Manning Napier Pro |
| Pro-blend(r) Moderate |
Manning Napier and Pro-blend(r) Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Pro-blend(r) Moderate
The main advantage of trading using opposite Manning Napier and Pro-blend(r) Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Pro-blend(r) Moderate 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 Pro-blend(r) Moderate will offset losses from the drop in Pro-blend(r) Moderate's long position.| Manning Napier vs. Evaluator Conservative Rms | Manning Napier vs. Massmutual Premier Diversified | Manning Napier vs. Fidelity Advisor Diversified | Manning Napier vs. Calvert Conservative Allocation |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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