Correlation Between Siit Emerging and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Siit Emerging 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 Siit Emerging and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Manning Napier Diversified, you can compare the effects of market volatilities on Siit Emerging 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 Siit Emerging with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Manning Napier.
Diversification Opportunities for Siit Emerging and Manning Napier
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Manning is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Manning Napier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Diver and Siit Emerging 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 Siit Emerging Markets 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 Diver has no effect on the direction of Siit Emerging i.e., Siit Emerging and Manning Napier go up and down completely randomly.
Pair Corralation between Siit Emerging and Manning Napier
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 2.51 times more return on investment than Manning Napier. However, Siit Emerging is 2.51 times more volatile than Manning Napier Diversified. It trades about 0.29 of its potential returns per unit of risk. Manning Napier Diversified is currently generating about 0.1 per unit of risk. If you would invest 830.00 in Siit Emerging Markets on November 4, 2024 and sell it today you would earn a total of 18.00 from holding Siit Emerging Markets or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Manning Napier Diversified
Performance |
| Timeline |
| Siit Emerging Markets |
| Manning Napier Diver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Siit Emerging and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Manning Napier
The main advantage of trading using opposite Siit Emerging and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging 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.| Siit Emerging vs. Invesco Global Health | Siit Emerging vs. Live Oak Health | Siit Emerging vs. Deutsche Health And | Siit Emerging vs. Highland Longshort Healthcare |
| Manning Napier vs. Cref Inflation Linked Bond | Manning Napier vs. Asg Managed Futures | Manning Napier vs. Arrow Managed Futures | Manning Napier vs. Guggenheim Managed Futures |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |