Correlation Between Manning Napier and Overseas Series

Can any of the company-specific risk be diversified away by investing in both Manning Napier and Overseas Series 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 Overseas Series 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 Overseas Series Class, you can compare the effects of market volatilities on Manning Napier and Overseas Series 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 Overseas Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Overseas Series.

Diversification Opportunities for Manning Napier and Overseas Series

-0.53

Correlation Coefficient

Manning Napier  Overseas Series

Excellent diversification

The 3 months correlation between Manning and Overseas is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Overseas Series Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Overseas Series Class 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 Overseas Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Overseas Series Class has no effect on the direction of Manning Napier i.e., Manning Napier and Overseas Series go up and down completely randomly.

Pair Corralation between Manning Napier and Overseas Series

Assuming the 90 days horizon Manning Napier Callodine is expected to generate 1.03 times more return on investment than Overseas Series. However, Manning Napier is 1.03 times more volatile than Overseas Series Class. It trades about 0.19 of its potential returns per unit of risk. Overseas Series Class is currently generating about -0.03 per unit of risk. If you would invest  1,418  in Manning Napier Callodine on September 3, 2024 and sell it today you would earn a total of  161.00  from holding Manning Napier Callodine or generate 11.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Manning Napier Callodine  vs.  Overseas Series Class

Manning Napier Callodine

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Callodine are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Manning Napier may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Overseas Series Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Overseas Series Class has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Overseas Series 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 Overseas Series

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

The idea behind Manning Napier Callodine and Overseas Series Class 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.