Correlation Between Manning Napier and Core Bond

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

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

Diversification Opportunities for Manning Napier and Core Bond

0.52

Correlation Coefficient

Manning Napier  Core Bond

Very weak diversification

The 3 months correlation between Manning and Core is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Core Bond Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Bond Series 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 Callodine are associated (or correlated) with Core Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Bond Series has no effect on the direction of Manning Napier i.e., Manning Napier and Core Bond go up and down completely randomly.

Pair Corralation between Manning Napier and Core Bond

Assuming the 90 days horizon Manning Napier Callodine is expected to under-perform the Core Bond. In addition to that, Manning Napier is 6.0 times more volatile than Core Bond Series. It trades about -0.08 of its total potential returns per unit of risk. Core Bond Series is currently generating about -0.12 per unit of volatility. If you would invest  924.00  in Core Bond Series on October 6, 2024 and sell it today you would lose (17.00) from holding Core Bond Series or give up 1.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.62%
Values	Daily Returns

Manning Napier Callodine  vs.  Core Bond Series

Manning Napier Callodine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manning Napier Callodine has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Manning Napier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Core Bond Series

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Core Bond Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Core Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Manning Napier and Core Bond

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

The idea behind Manning Napier Callodine and Core Bond Series 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.