Correlation Between Citigroup and Neuberger Berman

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Neuberger Berman International, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Neuberger Berman.

Diversification Opportunities for Citigroup and Neuberger Berman

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between Citigroup and Neuberger is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Neuberger Berman International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Int and Citigroup 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 Citigroup 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 Int has no effect on the direction of Citigroup i.e., Citigroup and Neuberger Berman go up and down completely randomly.

Pair Corralation between Citigroup and Neuberger Berman

Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Neuberger Berman. In addition to that, Citigroup is 2.01 times more volatile than Neuberger Berman International. It trades about -0.18 of its total potential returns per unit of risk. Neuberger Berman International is currently generating about 0.0 per unit of volatility. If you would invest  1,344  in Neuberger Berman International on December 29, 2024 and sell it today you would lose (1.00) from holding Neuberger Berman International or give up 0.07% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Citigroup  vs.  Neuberger Berman International

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Neuberger Berman Int 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman International 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 April 2025.

Citigroup and Neuberger Berman Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and Neuberger Berman

The main advantage of trading using opposite Citigroup and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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 Citigroup and Neuberger Berman International 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.
Check out your portfolio center.
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.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios