Correlation Between American Funds and Manning Napier
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Retirement and Manning Napier Disciplined, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Manning Napier.
Diversification Opportunities for American Funds and Manning Napier
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and Manning is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Retirement and Manning Napier Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Disci and American Funds 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 American Funds Retirement 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 Disci has no effect on the direction of American Funds i.e., American Funds and Manning Napier go up and down completely randomly.
Pair Corralation between American Funds and Manning Napier
Assuming the 90 days horizon American Funds is expected to generate 1.62 times less return on investment than Manning Napier. But when comparing it to its historical volatility, American Funds Retirement is 1.75 times less risky than Manning Napier. It trades about 0.11 of its potential returns per unit of risk. Manning Napier Disciplined is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Manning Napier Disciplined on September 2, 2024 and sell it today you would earn a total of 201.00 from holding Manning Napier Disciplined or generate 29.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Retirement vs. Manning Napier Disciplined
Performance |
| Timeline |
| American Funds Retirement |
| Manning Napier Disci |
American Funds and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Manning Napier
The main advantage of trading using opposite American Funds and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Shelton Emerging Markets | American Funds vs. Pnc Emerging Markets | American Funds vs. Dws Emerging Markets | American Funds vs. Doubleline Emerging Markets |
| Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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