Correlation Between Western Asset and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Manning Napier Callodine, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Manning Napier.
Diversification Opportunities for Western Asset and Manning Napier
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Manning is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified 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 Western Asset 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 Western Asset 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 Callodine has no effect on the direction of Western Asset i.e., Western Asset and Manning Napier go up and down completely randomly.
Pair Corralation between Western Asset and Manning Napier
Assuming the 90 days horizon Western Asset is expected to generate 22.87 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Western Asset Diversified is 3.74 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 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,425 in Manning Napier Callodine on September 4, 2024 and sell it today you would earn a total of 140.00 from holding Manning Napier Callodine or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Western Asset Diversified vs. Manning Napier Callodine
Performance |
| Timeline |
| Western Asset Diversified |
| Manning Napier Callodine |
Western Asset and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Manning Napier
The main advantage of trading using opposite Western Asset and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Dreyfusstandish Global Fixed | Western Asset vs. Franklin Mutual Global | Western Asset vs. Commonwealth Global Fund | Western Asset vs. Scharf Global Opportunity |
| Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term | Manning Napier vs. Pro Blend Extended Term | Manning Napier vs. Unconstrained Bond Series |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |