Correlation Between Ellomay Capital and Neuberger Berman

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

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

Diversification Opportunities for Ellomay Capital and Neuberger Berman

-0.1

Correlation Coefficient

Ellomay Capital  Neuberger Berman

Good diversification

The 3 months correlation between Ellomay and Neuberger is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital and Neuberger Berman New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman New and Ellomay Capital 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 Ellomay Capital 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 New has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and Neuberger Berman go up and down completely randomly.

Pair Corralation between Ellomay Capital and Neuberger Berman

If you would invest  1,549  in Ellomay Capital on October 10, 2024 and sell it today you would earn a total of  91.00  from holding Ellomay Capital or generate 5.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Ellomay Capital  vs.  Neuberger Berman New

Ellomay Capital

Risk-Adjusted Performance

10 of 100

Good

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

Neuberger Berman New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman New has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Neuberger Berman is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ellomay Capital and Neuberger Berman

The main advantage of trading using opposite Ellomay Capital and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital 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 Ellomay Capital and Neuberger Berman New 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.