Correlation Between Core Bond and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Core Bond 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 Core Bond and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Bond Series and Manning Napier Callodine, you can compare the effects of market volatilities on Core Bond 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 Core Bond with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Bond and Manning Napier.
Diversification Opportunities for Core Bond and Manning Napier
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CORE and Manning is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Core Bond Series and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine and Core Bond 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 Core Bond Series 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 Callodine has no effect on the direction of Core Bond i.e., Core Bond and Manning Napier go up and down completely randomly.
Pair Corralation between Core Bond and Manning Napier
Assuming the 90 days horizon Core Bond Series is expected to generate 0.2 times more return on investment than Manning Napier. However, Core Bond Series is 4.99 times less risky than Manning Napier. It trades about 0.04 of its potential returns per unit of risk. Manning Napier Callodine is currently generating about -0.16 per unit of risk. If you would invest 925.00 in Core Bond Series on December 4, 2024 and sell it today you would earn a total of 7.00 from holding Core Bond Series or generate 0.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.33% |
Values | Daily Returns |
Core Bond Series vs. Manning Napier Callodine
Performance |
Timeline |
Core Bond Series |
Manning Napier Callodine |
Core Bond and Manning Napier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Core Bond and Manning Napier
The main advantage of trading using opposite Core Bond and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Bond 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.Core Bond vs. Unconstrained Bond Series | Core Bond vs. Pro Blend Moderate Term | Core Bond vs. High Yield Bond | Core Bond vs. Overseas Series Class |
Manning Napier vs. Blackrock Smid Cap Growth | Manning Napier vs. Valic Company I | Manning Napier vs. Transamerica Financial Life | Manning Napier vs. Ashmore Emerging Markets |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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