Correlation Between Focused International and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Focused International 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 Focused International and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focused International Growth and Manning Napier Overseas, you can compare the effects of market volatilities on Focused International 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 Focused International with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focused International and Manning Napier.
Diversification Opportunities for Focused International and Manning Napier
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focused and Manning is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Focused International Growth and Manning Napier Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Overseas and Focused International 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 Focused International Growth 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 Overseas has no effect on the direction of Focused International i.e., Focused International and Manning Napier go up and down completely randomly.
Pair Corralation between Focused International and Manning Napier
Assuming the 90 days horizon Focused International Growth is expected to generate 1.02 times more return on investment than Manning Napier. However, Focused International is 1.02 times more volatile than Manning Napier Overseas. It trades about -0.07 of its potential returns per unit of risk. Manning Napier Overseas is currently generating about -0.16 per unit of risk. If you would invest 1,696 in Focused International Growth on September 24, 2024 and sell it today you would lose (22.00) from holding Focused International Growth or give up 1.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Focused International Growth vs. Manning Napier Overseas
Performance |
Timeline |
Focused International |
Manning Napier Overseas |
Focused International and Manning Napier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focused International and Manning Napier
The main advantage of trading using opposite Focused International and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focused International 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.Focused International vs. Value Fund Investor | Focused International vs. Ultra Fund Investor | Focused International vs. Growth Fund Investor | Focused International vs. Income Growth Fund |
Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Manning Napier Callodine | Manning Napier vs. Pro Blend Extended Term |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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