Correlation Between Manning Napier and Blackstone
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier and Blackstone Group, you can compare the effects of market volatilities on Manning Napier and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Blackstone.
Diversification Opportunities for Manning Napier and Blackstone
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manning and Blackstone is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Manning Napier i.e., Manning Napier and Blackstone go up and down completely randomly.
Pair Corralation between Manning Napier and Blackstone
Allowing for the 90-day total investment horizon Manning Napier is expected to generate 4.04 times less return on investment than Blackstone. But when comparing it to its historical volatility, Manning Napier is 3.09 times less risky than Blackstone. It trades about 0.03 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,513 in Blackstone Group on January 26, 2024 and sell it today you would earn a total of 2,865 from holding Blackstone Group or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.9% |
| Values | Daily Returns |
Manning Napier vs. Blackstone Group
Performance |
| Timeline |
| Manning Napier |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackstone Group |
Manning Napier and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Blackstone
The main advantage of trading using opposite Manning Napier and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Manning Napier vs. Joby Aviation | Manning Napier vs. Natural Alternatives International | Manning Napier vs. Marfrig Global Foods | Manning Napier vs. Papaya Growth Opportunity |
| Blackstone vs. Federated Premier Municipal | Blackstone vs. Blackrock Muniyield | Blackstone vs. NXG NextGen Infrastructure | Blackstone vs. Brightsphere Investment Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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