Correlation Between Manning Napier and Bank of New York
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Bank of New York 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 Manning Napier and Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier and Bank of New, you can compare the effects of market volatilities on Manning Napier and Bank of New York 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 Manning Napier with a short position of Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Bank of New York.
Diversification Opportunities for Manning Napier and Bank of New York
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manning and Bank is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier and Bank of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York and Manning Napier 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 Manning Napier are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Manning Napier i.e., Manning Napier and Bank of New York go up and down completely randomly.
Pair Corralation between Manning Napier and Bank of New York
If you would invest 4,419 in Bank of New on January 24, 2024 and sell it today you would earn a total of 1,297 from holding Bank of New or generate 29.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.54% |
| Values | Daily Returns |
Manning Napier vs. Bank of New
Performance |
| Timeline |
| Manning Napier |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bank of New York |
Manning Napier and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Bank of New York
The main advantage of trading using opposite Manning Napier and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| Manning Napier vs. Kenon Holdings | Manning Napier vs. Reynaldos Mexican Food | Manning Napier vs. Bridgford Foods | Manning Napier vs. Western Midstream Partners |
| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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