Correlation Between Pgim Jennison and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison 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 Pgim Jennison and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Diversified and Manning Napier Disciplined, you can compare the effects of market volatilities on Pgim Jennison 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 Pgim Jennison with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Manning Napier.
Diversification Opportunities for Pgim Jennison and Manning Napier
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PGIM and Manning is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified 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 Pgim Jennison 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 Pgim Jennison Diversified 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 Pgim Jennison i.e., Pgim Jennison and Manning Napier go up and down completely randomly.
Pair Corralation between Pgim Jennison and Manning Napier
Assuming the 90 days horizon Pgim Jennison Diversified is expected to under-perform the Manning Napier. In addition to that, Pgim Jennison is 1.5 times more volatile than Manning Napier Disciplined. It trades about -0.08 of its total potential returns per unit of risk. Manning Napier Disciplined is currently generating about -0.09 per unit of volatility. If you would invest 802.00 in Manning Napier Disciplined on November 28, 2024 and sell it today you would lose (10.00) from holding Manning Napier Disciplined or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Manning Napier Disciplined
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Manning Napier Disci |
Pgim Jennison and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Manning Napier
The main advantage of trading using opposite Pgim Jennison and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison 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.| Pgim Jennison vs. Pace International Emerging | Pgim Jennison vs. Barings Emerging Markets | Pgim Jennison vs. Doubleline Emerging Markets | Pgim Jennison vs. Investec Emerging Markets |
| Manning Napier vs. Intermediate Bond Fund | Manning Napier vs. Ab Bond Inflation | Manning Napier vs. Scout E Bond | Manning Napier vs. Doubleline Total Return |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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