Correlation Between Manning Napier and Pro Blend

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

Diversification Opportunities for Manning Napier and Pro Blend

0.79

Correlation Coefficient

Manning Napier  Pro Blend

Poor diversification

The 3 months correlation between Manning and Pro is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Core and Pro Blend Servative Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Blend Servative 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 Pro Blend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Blend Servative has no effect on the direction of Manning Napier i.e., Manning Napier and Pro Blend go up and down completely randomly.

Pair Corralation between Manning Napier and Pro Blend

Assuming the 90 days horizon Manning Napier is expected to generate 2.26 times less return on investment than Pro Blend. In addition to that, Manning Napier is 1.2 times more volatile than Pro Blend Servative Term. It trades about 0.08 of its total potential returns per unit of risk. Pro Blend Servative Term is currently generating about 0.21 per unit of volatility. If you would invest  1,302  in Pro Blend Servative Term on April 24, 2025 and sell it today you would earn a total of  43.00  from holding Pro Blend Servative Term or generate 3.3% return on investment over 90 days.

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

Manning Napier Core  vs.  Pro Blend Servative Term

Manning Napier Core

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Core are ranked lower than 6 (%) 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.

Pro Blend Servative

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Blend Servative Term are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Pro Blend 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 Pro Blend

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

The idea behind Manning Napier Core and Pro Blend Servative Term 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..