Correlation Between Columbia Real and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Columbia Real 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 Columbia Real and Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Real Estate and Manning Napier Rainier, you can compare the effects of market volatilities on Columbia Real 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 Columbia Real with a short position of Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Real and Manning Napier.
Diversification Opportunities for Columbia Real and Manning Napier
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Columbia and Manning is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Real Estate and Manning Napier Rainier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Rainier and Columbia Real 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 Columbia Real Estate 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 Rainier has no effect on the direction of Columbia Real i.e., Columbia Real and Manning Napier go up and down completely randomly.
Pair Corralation between Columbia Real and Manning Napier
Assuming the 90 days horizon Columbia Real is expected to generate 1.23 times less return on investment than Manning Napier. In addition to that, Columbia Real is 1.22 times more volatile than Manning Napier Rainier. It trades about 0.05 of its total potential returns per unit of risk. Manning Napier Rainier is currently generating about 0.08 per unit of volatility. If you would invest 2,338 in Manning Napier Rainier on September 6, 2024 and sell it today you would earn a total of 84.00 from holding Manning Napier Rainier or generate 3.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Columbia Real Estate vs. Manning Napier Rainier
Performance |
Timeline |
Columbia Real Estate |
Manning Napier Rainier |
Columbia Real and Manning Napier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Columbia Real and Manning Napier
The main advantage of trading using opposite Columbia Real and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Real 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.Columbia Real vs. Realty Income | Columbia Real vs. Dynex Capital | Columbia Real vs. First Industrial Realty | Columbia Real vs. Healthcare Realty Trust |
Manning Napier vs. Dunham Real Estate | Manning Napier vs. Columbia Real Estate | Manning Napier vs. Commonwealth Real Estate | Manning Napier vs. Pender Real Estate |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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