Correlation Between Manning Napier and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Manning Napier and NYSE Composite 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 NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Pro Blend and NYSE Composite, you can compare the effects of market volatilities on Manning Napier and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and NYSE Composite.
Diversification Opportunities for Manning Napier and NYSE Composite
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manning and NYSE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Pro Blend and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 Pro Blend are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Manning Napier i.e., Manning Napier and NYSE Composite go up and down completely randomly.
Pair Corralation between Manning Napier and NYSE Composite
Assuming the 90 days horizon Manning Napier Pro Blend is expected to generate 0.83 times more return on investment than NYSE Composite. However, Manning Napier Pro Blend is 1.2 times less risky than NYSE Composite. It trades about -0.05 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.14 per unit of risk. If you would invest 1,909 in Manning Napier Pro Blend on February 6, 2024 and sell it today you would lose (12.00) from holding Manning Napier Pro Blend or give up 0.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Manning Napier Pro Blend vs. NYSE Composite
Performance |
Timeline |
Manning Napier and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Manning Napier Pro Blend
Pair trading matchups for Manning Napier
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Manning Napier and NYSE Composite
The main advantage of trading using opposite Manning Napier and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.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 |
NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. National Beverage Corp | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Coty Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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