Correlation Between Manning Napier and Massmutual Premier

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Manning Napier and Massmutual Premier 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 Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier Diversified and Massmutual Premier Diversified, you can compare the effects of market volatilities on Manning Napier and Massmutual Premier 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 Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Massmutual Premier.

Diversification Opportunities for Manning Napier and Massmutual Premier

0.92
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Manning and MASSMUTUAL is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and Massmutual Premier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier 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 Diversified are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier has no effect on the direction of Manning Napier i.e., Manning Napier and Massmutual Premier go up and down completely randomly.

Pair Corralation between Manning Napier and Massmutual Premier

Assuming the 90 days horizon Manning Napier Diversified is expected to generate 0.6 times more return on investment than Massmutual Premier. However, Manning Napier Diversified is 1.68 times less risky than Massmutual Premier. It trades about 0.3 of its potential returns per unit of risk. Massmutual Premier Diversified is currently generating about 0.13 per unit of risk. If you would invest  1,031  in Manning Napier Diversified on September 4, 2025 and sell it today you would earn a total of  21.00  from holding Manning Napier Diversified or generate 2.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Manning Napier Diversified  vs.  Massmutual Premier Diversified

 Performance 
       Timeline  
Manning Napier Diver 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Diversified are ranked lower than 23 (%) 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.
Massmutual Premier 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Premier Diversified are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Massmutual Premier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Manning Napier and Massmutual Premier Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Manning Napier and Massmutual Premier

The main advantage of trading using opposite Manning Napier and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier's long position.
The idea behind Manning Napier Diversified and Massmutual Premier Diversified 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.
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 Transaction History module to view history of all your transactions and understand their impact on performance.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Fundamental Analysis
View fundamental data based on most recent published financial statements