Correlation Between Manning Napier and Sit Dividend

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

Diversification Opportunities for Manning Napier and Sit Dividend

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Manning and Sit is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier Diversified and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth 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 Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Manning Napier i.e., Manning Napier and Sit Dividend go up and down completely randomly.

Pair Corralation between Manning Napier and Sit Dividend

Assuming the 90 days horizon Manning Napier is expected to generate 2.74 times less return on investment than Sit Dividend. But when comparing it to its historical volatility, Manning Napier Diversified is 5.81 times less risky than Sit Dividend. It trades about 0.34 of its potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,715  in Sit Dividend Growth on August 31, 2025 and sell it today you would earn a total of  110.00  from holding Sit Dividend Growth or generate 6.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Manning Napier Diversified  vs.  Sit Dividend Growth

 Performance 
       Timeline  
Manning Napier Diver 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Manning Napier Diversified are ranked lower than 27 (%) 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.
Sit Dividend Growth 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sit Dividend Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Sit Dividend may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Manning Napier and Sit Dividend Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Manning Napier and Sit Dividend

The main advantage of trading using opposite Manning Napier and Sit Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier position performs unexpectedly, Sit Dividend 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 Sit Dividend will offset losses from the drop in Sit Dividend's long position.
The idea behind Manning Napier Diversified and Sit Dividend Growth 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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