Correlation Between Pace International and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pace International 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 Pace International and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace International Emerging and Manning Napier Pro Blend, you can compare the effects of market volatilities on Pace International 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 Pace International with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Manning Napier.
Diversification Opportunities for Pace International and Manning Napier
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PACE and Manning is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Manning Napier Pro Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Pro and Pace International 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 Pace International Emerging 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 Pro has no effect on the direction of Pace International i.e., Pace International and Manning Napier go up and down completely randomly.
Pair Corralation between Pace International and Manning Napier
Assuming the 90 days horizon Pace International is expected to generate 2.2 times less return on investment than Manning Napier. In addition to that, Pace International is 1.96 times more volatile than Manning Napier Pro Blend. It trades about 0.02 of its total potential returns per unit of risk. Manning Napier Pro Blend is currently generating about 0.1 per unit of volatility. If you would invest 1,710 in Manning Napier Pro Blend on September 3, 2024 and sell it today you would earn a total of 377.00 from holding Manning Napier Pro Blend or generate 22.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace International Emerging vs. Manning Napier Pro Blend
Performance |
| Timeline |
| Pace International |
| Manning Napier Pro |
Pace International and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace International and Manning Napier
The main advantage of trading using opposite Pace International and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International 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.| Pace International vs. Kinetics Market Opportunities | Pace International vs. Rbc Emerging Markets | Pace International vs. Barings Emerging Markets | Pace International vs. Artisan Emerging Markets |
| Manning Napier vs. Calamos Dynamic Convertible | Manning Napier vs. Fidelity Sai Convertible | Manning Napier vs. Advent Claymore Convertible | Manning Napier vs. Putnam Convertible Incm Gwth |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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