Correlation Between Saat Moderate and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Manning Napier Disciplined, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Manning Napier.
Diversification Opportunities for Saat Moderate and Manning Napier
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saat and Manning is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy 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 Saat Moderate 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 Saat Moderate Strategy 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 Saat Moderate i.e., Saat Moderate and Manning Napier go up and down completely randomly.
Pair Corralation between Saat Moderate and Manning Napier
Assuming the 90 days horizon Saat Moderate is expected to generate 7.05 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Saat Moderate Strategy is 3.56 times less risky than Manning Napier. It trades about 0.15 of its potential returns per unit of risk. Manning Napier Disciplined is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 836.00 in Manning Napier Disciplined on August 30, 2024 and sell it today you would earn a total of 51.00 from holding Manning Napier Disciplined or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Manning Napier Disciplined
Performance |
| Timeline |
| Saat Moderate Strategy |
| Manning Napier Disci |
Saat Moderate and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Manning Napier
The main advantage of trading using opposite Saat Moderate and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.| Saat Moderate vs. The Hartford Inflation | Saat Moderate vs. Ab Bond Inflation | Saat Moderate vs. Ab Bond Inflation | Saat Moderate vs. Ab Bond Inflation |
| Manning Napier vs. Dimensional Retirement Income | Manning Napier vs. Saat Moderate Strategy | Manning Napier vs. American Funds Retirement | Manning Napier vs. Jp Morgan Smartretirement |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |