Correlation Between Pro-blend(r) Extended and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pro-blend(r) Extended 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 Pro-blend(r) Extended and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Extended Term and Manning Napier Pro Blend, you can compare the effects of market volatilities on Pro-blend(r) Extended 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 Pro-blend(r) Extended with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro-blend(r) Extended and Manning Napier.
Diversification Opportunities for Pro-blend(r) Extended and Manning Napier
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pro-blend(r) and Manning is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Extended Term and Manning Napier Pro Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Pro and Pro-blend(r) Extended 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 Pro Blend Extended Term 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 Pro has no effect on the direction of Pro-blend(r) Extended i.e., Pro-blend(r) Extended and Manning Napier go up and down completely randomly.
Pair Corralation between Pro-blend(r) Extended and Manning Napier
Assuming the 90 days horizon Pro-blend(r) Extended is expected to generate 1.15 times less return on investment than Manning Napier. But when comparing it to its historical volatility, Pro Blend Extended Term is 1.01 times less risky than Manning Napier. It trades about 0.26 of its potential returns per unit of risk. Manning Napier Pro Blend is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,880 in Manning Napier Pro Blend on February 26, 2024 and sell it today you would earn a total of 51.00 from holding Manning Napier Pro Blend or generate 2.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Pro Blend Extended Term vs. Manning Napier Pro Blend
Performance |
Timeline |
Pro-blend(r) Extended |
Manning Napier Pro |
Pro-blend(r) Extended and Manning Napier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pro-blend(r) Extended and Manning Napier
The main advantage of trading using opposite Pro-blend(r) Extended and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro-blend(r) Extended 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.Pro-blend(r) Extended vs. Pro Blend Moderate Term | Pro-blend(r) Extended vs. Pro Blend Maximum Term | Pro-blend(r) Extended vs. Pro Blend Servative Term | Pro-blend(r) Extended vs. Madison Mid Cap |
Manning Napier vs. Pro Blend Moderate Term | Manning Napier vs. Pro Blend Maximum Term | Manning Napier vs. Pro Blend Servative Term | Manning Napier vs. Madison Mid Cap |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |