Correlation Between Firsthand Technology and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology 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 Firsthand Technology and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Technology Opportunities and Manning Napier Core, you can compare the effects of market volatilities on Firsthand Technology 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 Firsthand Technology with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Manning Napier.
Diversification Opportunities for Firsthand Technology and Manning Napier
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FIRSTHAND and Manning is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Manning Napier Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Core and Firsthand Technology 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 Firsthand Technology Opportunities 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 Core has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Manning Napier go up and down completely randomly.
Pair Corralation between Firsthand Technology and Manning Napier
Assuming the 90 days horizon Firsthand Technology Opportunities is expected to under-perform the Manning Napier. In addition to that, Firsthand Technology is 2.21 times more volatile than Manning Napier Core. It trades about -0.02 of its total potential returns per unit of risk. Manning Napier Core is currently generating about 0.02 per unit of volatility. If you would invest 873.00 in Manning Napier Core on September 2, 2024 and sell it today you would earn a total of 56.00 from holding Manning Napier Core or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Manning Napier Core
Performance |
| Timeline |
| Firsthand Technology |
| Manning Napier Core |
Firsthand Technology and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Manning Napier
The main advantage of trading using opposite Firsthand Technology and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology 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.| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet Fund |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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