Correlation Between Manning Napier and California High-yield
Can any of the company-specific risk be diversified away by investing in both Manning Napier and California High-yield 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 California High-yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Overseas and California High Yield Municipal, you can compare the effects of market volatilities on Manning Napier and California High-yield 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 California High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and California High-yield.
Diversification Opportunities for Manning Napier and California High-yield
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manning and California is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Overseas and California High Yield Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California High Yield 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 Overseas are associated (or correlated) with California High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California High Yield has no effect on the direction of Manning Napier i.e., Manning Napier and California High-yield go up and down completely randomly.
Pair Corralation between Manning Napier and California High-yield
Assuming the 90 days horizon Manning Napier Overseas is expected to generate 2.81 times more return on investment than California High-yield. However, Manning Napier is 2.81 times more volatile than California High Yield Municipal. It trades about 0.06 of its potential returns per unit of risk. California High Yield Municipal is currently generating about 0.07 per unit of risk. If you would invest 2,673 in Manning Napier Overseas on August 30, 2024 and sell it today you would earn a total of 665.00 from holding Manning Napier Overseas or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manning Napier Overseas vs. California High Yield Municipa
Performance |
| Timeline |
| Manning Napier Overseas |
| California High Yield |
Manning Napier and California High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and California High-yield
The main advantage of trading using opposite Manning Napier and California High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, California High-yield 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 California High-yield will offset losses from the drop in California High-yield's long position.| Manning Napier vs. Pace High Yield | Manning Napier vs. Ppm High Yield | Manning Napier vs. Tiaa Cref High Yield Fund | Manning Napier vs. American Century High |
| California High-yield vs. Davis Financial Fund | California High-yield vs. Icon Financial Fund | California High-yield vs. Financial Industries Fund | California High-yield vs. Transamerica Financial Life |
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.
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