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 Rainier, 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
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and Manning is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Manning Napier Rainier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Rainier 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 Rainier 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 Strategy is expected to generate 0.44 times more return on investment than Manning Napier. However, Saat Moderate Strategy is 2.29 times less risky than Manning Napier. It trades about -0.11 of its potential returns per unit of risk. Manning Napier Rainier is currently generating about -0.05 per unit of risk. If you would invest 1,167 in Saat Moderate Strategy on January 12, 2025 and sell it today you would lose (25.00) from holding Saat Moderate Strategy or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Manning Napier Rainier
Performance |
| Timeline |
| Saat Moderate Strategy |
| Manning Napier Rainier |
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. Simt Multi Asset Accumulation | Saat Moderate vs. Saat Market Growth | Saat Moderate vs. Simt Real Return | Saat Moderate vs. Simt Small Cap |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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