Correlation Between Aig Government and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Aig Government 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 Aig Government and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Manning Napier Diversified, you can compare the effects of market volatilities on Aig Government 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 Aig Government with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Manning Napier.
Diversification Opportunities for Aig Government and Manning Napier
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aig and Manning is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money 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 Aig Government 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 Aig Government Money 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 Aig Government i.e., Aig Government and Manning Napier go up and down completely randomly.
Pair Corralation between Aig Government and Manning Napier
Assuming the 90 days horizon Aig Government Money is expected to under-perform the Manning Napier. In addition to that, Aig Government is 1.13 times more volatile than Manning Napier Diversified. It trades about -0.08 of its total potential returns per unit of risk. Manning Napier Diversified is currently generating about -0.08 per unit of volatility. If you would invest 1,035 in Manning Napier Diversified on October 17, 2024 and sell it today you would lose (6.00) from holding Manning Napier Diversified or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Manning Napier Diversified
Performance |
| Timeline |
| Aig Government Money |
| Manning Napier Diver |
Aig Government and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Manning Napier
The main advantage of trading using opposite Aig Government and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government 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.| Aig Government vs. Inflation Protected Bond Fund | Aig Government vs. Lord Abbett Inflation | Aig Government vs. Atac Inflation Rotation | Aig Government vs. Tiaa Cref Inflation Link |
| Manning Napier vs. Bbh Intermediate Municipal | Manning Napier vs. Blrc Sgy Mnp | Manning Napier vs. Nuveen Strategic Municipal | Manning Napier vs. Aig Government Money |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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