Correlation Between Nasdaq and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Nasdaq 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 Nasdaq and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Manning Napier Credit, you can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Manning Napier.
Diversification Opportunities for Nasdaq and Manning Napier
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Manning is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc 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 Nasdaq 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 Nasdaq Inc 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 Nasdaq i.e., Nasdaq and Manning Napier go up and down completely randomly.
Pair Corralation between Nasdaq and Manning Napier
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 2.72 times more return on investment than Manning Napier. However, Nasdaq is 2.72 times more volatile than Manning Napier Credit. It trades about 0.16 of its potential returns per unit of risk. Manning Napier Credit is currently generating about 0.16 per unit of risk. If you would invest 7,783 in Nasdaq Inc on September 15, 2024 and sell it today you would earn a total of 229.00 from holding Nasdaq Inc or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Manning Napier Credit
Performance |
| Timeline |
| Nasdaq Inc |
| Manning Napier Credit |
Nasdaq and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Manning Napier
The main advantage of trading using opposite Nasdaq and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 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.The idea behind Nasdaq Inc and Manning Napier Credit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Manning Napier vs. Ishares Municipal Bond | Manning Napier vs. T Rowe Price | Manning Napier vs. Blrc Sgy Mnp | Manning Napier vs. Ambrus Core Bond |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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