Correlation Between ANT and Neuberger Berman

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

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

Diversification Opportunities for ANT and Neuberger Berman

-0.07

Correlation Coefficient

ANT  Neuberger Berman

Good diversification

The 3 months correlation between ANT and Neuberger is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Neuberger Berman Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Guardian and ANT 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 ANT 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 Guardian has no effect on the direction of ANT i.e., ANT and Neuberger Berman go up and down completely randomly.

Pair Corralation between ANT and Neuberger Berman

Assuming the 90 days trading horizon ANT is expected to generate 75.57 times more return on investment than Neuberger Berman. However, ANT is 75.57 times more volatile than Neuberger Berman Guardian. It trades about 0.12 of its potential returns per unit of risk. Neuberger Berman Guardian is currently generating about 0.06 per unit of risk. If you would invest  933.00  in ANT on October 24, 2024 and sell it today you would lose (786.00) from holding ANT or give up 84.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.14%
Values	Daily Returns

ANT  vs.  Neuberger Berman Guardian

ANT

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Neuberger Berman Guardian

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Guardian are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic 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 ANT and Neuberger Berman

The main advantage of trading using opposite ANT and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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 ANT and Neuberger Berman Guardian 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 CEOs Directory module to screen CEOs from public companies around the world.