Correlation Between Manning Napier and Disciplined Value

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

Diversification Opportunities for Manning Napier and Disciplined Value

0.95

Correlation Coefficient

Manning Napier  Disciplined Value

Almost no diversification

The 3 months correlation between Manning and DISCIPLINED is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Callodine and Disciplined Value Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Disciplined Value 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 Disciplined Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Disciplined Value Series has no effect on the direction of Manning Napier i.e., Manning Napier and Disciplined Value go up and down completely randomly.

Pair Corralation between Manning Napier and Disciplined Value

Assuming the 90 days horizon Manning Napier Callodine is expected to generate 1.16 times more return on investment than Disciplined Value. However, Manning Napier is 1.16 times more volatile than Disciplined Value Series. It trades about 0.19 of its potential returns per unit of risk. Disciplined Value Series is currently generating about 0.14 per unit of risk. If you would invest  1,405  in Manning Napier Callodine on September 5, 2024 and sell it today you would earn a total of  159.00  from holding Manning Napier Callodine or generate 11.32% return on investment over 90 days.

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

Manning Napier Callodine  vs.  Disciplined Value Series

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 basic indicators, Manning Napier may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Disciplined Value Series

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Disciplined Value Series are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Disciplined Value may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Manning Napier and Disciplined Value

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

The idea behind Manning Napier Callodine and Disciplined Value 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.