Correlation Between Vanguard 500 and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Vanguard 500 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 Vanguard 500 and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard 500 Index and Manning Napier Credit, you can compare the effects of market volatilities on Vanguard 500 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 Vanguard 500 with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard 500 and Manning Napier.
Diversification Opportunities for Vanguard 500 and Manning Napier
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vanguard and Manning is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard 500 Index and Manning Napier Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Credit and Vanguard 500 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 Vanguard 500 Index 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 Credit has no effect on the direction of Vanguard 500 i.e., Vanguard 500 and Manning Napier go up and down completely randomly.
Pair Corralation between Vanguard 500 and Manning Napier
Assuming the 90 days horizon Vanguard 500 Index is expected to generate 3.6 times more return on investment than Manning Napier. However, Vanguard 500 is 3.6 times more volatile than Manning Napier Credit. It trades about 0.14 of its potential returns per unit of risk. Manning Napier Credit is currently generating about -0.09 per unit of risk. If you would invest 43,582 in Vanguard 500 Index on September 14, 2024 and sell it today you would earn a total of 12,702 from holding Vanguard 500 Index or generate 29.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.39% |
| Values | Daily Returns |
Vanguard 500 Index vs. Manning Napier Credit
Performance |
| Timeline |
| Vanguard 500 Index |
| Manning Napier Credit |
Vanguard 500 and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard 500 and Manning Napier
The main advantage of trading using opposite Vanguard 500 and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard 500 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.| Vanguard 500 vs. Vanguard Total Stock | Vanguard 500 vs. Vanguard Total Bond | Vanguard 500 vs. Vanguard Windsor Ii | Vanguard 500 vs. Vanguard Small Cap Index |
| Manning Napier vs. Ishares Municipal Bond | Manning Napier vs. T Rowe Price | Manning Napier vs. Blrc Sgy Mnp | Manning Napier vs. Ambrus Core Bond |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |