Correlation Between Manning Napier and Gold

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

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

Diversification Opportunities for Manning Napier and Gold

0.57

Correlation Coefficient

Manning Napier  Gold

Very weak diversification

The 3 months correlation between Manning and Gold is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Core and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Core are associated (or correlated) with Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Manning Napier i.e., Manning Napier and Gold go up and down completely randomly.

Pair Corralation between Manning Napier and Gold

Assuming the 90 days horizon Manning Napier is expected to generate 4.65 times less return on investment than Gold. But when comparing it to its historical volatility, Manning Napier Core is 4.54 times less risky than Gold. It trades about 0.07 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  880.00  in Gold And Precious on December 2, 2024 and sell it today you would earn a total of  417.00  from holding Gold And Precious or generate 47.39% return on investment over 90 days.

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

Manning Napier Core  vs.  Gold And Precious

Manning Napier Core

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Core are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Manning Napier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gold And Precious

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gold And Precious are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Manning Napier and Gold

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

The idea behind Manning Napier Core and Gold And Precious 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.