Correlation Between Abrdn Bloomberg and Neuberger Berman

Can any of the company-specific risk be diversified away by investing in both Abrdn Bloomberg and Neuberger Berman 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 Abrdn Bloomberg and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between abrdn Bloomberg All and Neuberger Berman Commodity, you can compare the effects of market volatilities on Abrdn Bloomberg and Neuberger Berman 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 Abrdn Bloomberg with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Bloomberg and Neuberger Berman.

Diversification Opportunities for Abrdn Bloomberg and Neuberger Berman

0.98

Correlation Coefficient

Abrdn Bloomberg  Neuberger Berman

Almost no diversification

The 3 months correlation between Abrdn and Neuberger is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Bloomberg All and Neuberger Berman Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Com and Abrdn Bloomberg 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 abrdn Bloomberg All are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Com has no effect on the direction of Abrdn Bloomberg i.e., Abrdn Bloomberg and Neuberger Berman go up and down completely randomly.

Pair Corralation between Abrdn Bloomberg and Neuberger Berman

Considering the 90-day investment horizon abrdn Bloomberg All is expected to under-perform the Neuberger Berman. But the etf apears to be less risky and, when comparing its historical volatility, abrdn Bloomberg All is 1.1 times less risky than Neuberger Berman. The etf trades about -0.1 of its potential returns per unit of risk. The Neuberger Berman Commodity is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  2,197  in Neuberger Berman Commodity on September 4, 2024 and sell it today you would lose (31.00) from holding Neuberger Berman Commodity or give up 1.41% of portfolio value over 90 days.

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

abrdn Bloomberg All  vs.  Neuberger Berman Commodity

abrdn Bloomberg All

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Bloomberg All are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Abrdn Bloomberg is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Neuberger Berman Com

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Commodity are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Abrdn Bloomberg and Neuberger Berman

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

The idea behind abrdn Bloomberg All and Neuberger Berman Commodity 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.