Correlation Between Commodities Strategy and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Commodities Strategy 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 Commodities Strategy and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodities Strategy Fund and Manning Napier Callodine, you can compare the effects of market volatilities on Commodities Strategy 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 Commodities Strategy with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Manning Napier.
Diversification Opportunities for Commodities Strategy and Manning Napier
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Commodities and Manning is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy Fund and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine and Commodities Strategy 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 Commodities Strategy Fund 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 Callodine has no effect on the direction of Commodities Strategy i.e., Commodities Strategy and Manning Napier go up and down completely randomly.
Pair Corralation between Commodities Strategy and Manning Napier
Assuming the 90 days horizon Commodities Strategy Fund is expected to generate 41.76 times more return on investment than Manning Napier. However, Commodities Strategy is 41.76 times more volatile than Manning Napier Callodine. It trades about 0.12 of its potential returns per unit of risk. Manning Napier Callodine is currently generating about -0.02 per unit of risk. If you would invest 2,909 in Commodities Strategy Fund on November 28, 2024 and sell it today you would earn a total of 12,718 from holding Commodities Strategy Fund or generate 437.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commodities Strategy Fund vs. Manning Napier Callodine
Performance |
| Timeline |
| Commodities Strategy |
| Manning Napier Callodine |
Commodities Strategy and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodities Strategy and Manning Napier
The main advantage of trading using opposite Commodities Strategy and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy 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.| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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