Correlation Between Neuberger Berman and Csjxx

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

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

Diversification Opportunities for Neuberger Berman and Csjxx

0.68

Correlation Coefficient

Neuberger Berman  Csjxx

Poor diversification

The 3 months correlation between Neuberger and Csjxx is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Csjxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Csjxx and Neuberger Berman 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 Neuberger Berman High are associated (or correlated) with Csjxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Csjxx has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Csjxx go up and down completely randomly.

Pair Corralation between Neuberger Berman and Csjxx

Considering the 90-day investment horizon Neuberger Berman High is expected to under-perform the Csjxx. But the fund apears to be less risky and, when comparing its historical volatility, Neuberger Berman High is 53.46 times less risky than Csjxx. The fund trades about -0.16 of its potential returns per unit of risk. The Csjxx is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  494.00  in Csjxx on September 29, 2024 and sell it today you would lose (394.00) from holding Csjxx or give up 79.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Neuberger Berman High  vs.  Csjxx

Neuberger Berman High

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman High has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the fund private investors.

Csjxx

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Csjxx are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Csjxx showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neuberger Berman and Csjxx

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

The idea behind Neuberger Berman High and Csjxx 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.