Correlation Between Us Government and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Us 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 Us 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 Us Government Securities and Manning Napier Callodine, you can compare the effects of market volatilities on Us 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 Us Government with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Government and Manning Napier.
Diversification Opportunities for Us Government and Manning Napier
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USGFX and Manning is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Us Government Securities and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine and Us 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 Us Government Securities 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 Callodine has no effect on the direction of Us Government i.e., Us Government and Manning Napier go up and down completely randomly.
Pair Corralation between Us Government and Manning Napier
Assuming the 90 days horizon Us Government Securities is expected to generate 0.23 times more return on investment than Manning Napier. However, Us Government Securities is 4.44 times less risky than Manning Napier. It trades about 0.07 of its potential returns per unit of risk. Manning Napier Callodine is currently generating about -0.05 per unit of risk. If you would invest 1,173 in Us Government Securities on November 27, 2024 and sell it today you would earn a total of 21.00 from holding Us Government Securities or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Government Securities vs. Manning Napier Callodine
Performance |
| Timeline |
| Us Government Securities |
| Manning Napier Callodine |
Us Government and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Government and Manning Napier
The main advantage of trading using opposite Us Government and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us 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.| Us Government vs. Guggenheim High Yield | Us Government vs. Virtus High Yield | Us Government vs. Buffalo High Yield | Us Government vs. Pace High Yield |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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