Correlation Between Angel Oak and Neuberger Berman

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

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

Diversification Opportunities for Angel Oak and Neuberger Berman

0.17

Correlation Coefficient

Angel Oak  Neuberger Berman

Average diversification

The 3 months correlation between Angel and Neuberger is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Neuberger Berman Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Absolute and Angel Oak 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 Angel Oak Ultrashort 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 Absolute has no effect on the direction of Angel Oak i.e., Angel Oak and Neuberger Berman go up and down completely randomly.

Pair Corralation between Angel Oak and Neuberger Berman

Assuming the 90 days horizon Angel Oak Ultrashort is expected to under-perform the Neuberger Berman. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Ultrashort is 4.51 times less risky than Neuberger Berman. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Neuberger Berman Absolute is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,182  in Neuberger Berman Absolute on October 11, 2024 and sell it today you would earn a total of  3.00  from holding Neuberger Berman Absolute or generate 0.25% return on investment over 90 days.

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

Angel Oak Ultrashort  vs.  Neuberger Berman Absolute

Angel Oak Ultrashort

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Ultrashort are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Angel Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Neuberger Berman Absolute

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Absolute are ranked lower than 5 (%) 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 Angel Oak and Neuberger Berman

The main advantage of trading using opposite Angel Oak and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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 Angel Oak Ultrashort and Neuberger Berman Absolute 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.