Correlation Between Neuberger Berman and Neuberger Berman

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

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

Diversification Opportunities for Neuberger Berman and Neuberger Berman

0.8

Correlation Coefficient

Neuberger Berman  Neuberger Berman

Very poor diversification

The 3 months correlation between Neuberger and Neuberger is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Socially and Neuberger Berman High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman High 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 Socially 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 High has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Neuberger Berman go up and down completely randomly.

Pair Corralation between Neuberger Berman and Neuberger Berman

Assuming the 90 days horizon Neuberger Berman Socially is expected to generate 5.45 times more return on investment than Neuberger Berman. However, Neuberger Berman is 5.45 times more volatile than Neuberger Berman High. It trades about 0.13 of its potential returns per unit of risk. Neuberger Berman High is currently generating about 0.14 per unit of risk. If you would invest  4,794  in Neuberger Berman Socially on September 13, 2024 and sell it today you would earn a total of  368.00  from holding Neuberger Berman Socially or generate 7.68% return on investment over 90 days.

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

Neuberger Berman Socially  vs.  Neuberger Berman High

Neuberger Berman Socially

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Socially are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Neuberger Berman may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Neuberger Berman High

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman High are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Neuberger Berman and Neuberger Berman

The main advantage of trading using opposite Neuberger Berman and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman 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 Neuberger Berman Socially and Neuberger Berman High 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.