Correlation Between Manning Napier and Blackstone

Can any of the company-specific risk be diversified away by investing in both Manning Napier and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Manning Napier and Blackstone Group, you can compare the effects of market volatilities on Manning Napier and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Blackstone.

Diversification Opportunities for Manning Napier and Blackstone

-0.19

Correlation Coefficient

Manning Napier  Blackstone

Good diversification

The 3 months correlation between Manning and Blackstone is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Manning Napier i.e., Manning Napier and Blackstone go up and down completely randomly.

Pair Corralation between Manning Napier and Blackstone

If you would invest  1,285  in Manning Napier on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Manning Napier or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Manning Napier  vs.  Blackstone Group

Manning Napier

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manning Napier has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Manning Napier is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Blackstone Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Blackstone is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Manning Napier and Blackstone

The main advantage of trading using opposite Manning Napier and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.

The idea behind Manning Napier and Blackstone Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.