Correlation Between Fidelity Sai and Neuberger Berman

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

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

Diversification Opportunities for Fidelity Sai and Neuberger Berman

0.23

Correlation Coefficient

Fidelity Sai  Neuberger Berman

Modest diversification

The 3 months correlation between Fidelity and Neuberger is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Inflationfocused and Neuberger Berman Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Small and Fidelity Sai 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 Fidelity Sai Inflationfocused 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 Small has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Neuberger Berman go up and down completely randomly.

Pair Corralation between Fidelity Sai and Neuberger Berman

Assuming the 90 days horizon Fidelity Sai Inflationfocused is expected to generate 0.53 times more return on investment than Neuberger Berman. However, Fidelity Sai Inflationfocused is 1.89 times less risky than Neuberger Berman. It trades about 0.14 of its potential returns per unit of risk. Neuberger Berman Small is currently generating about -0.15 per unit of risk. If you would invest  8,378  in Fidelity Sai Inflationfocused on December 23, 2024 and sell it today you would earn a total of  576.00  from holding Fidelity Sai Inflationfocused or generate 6.88% return on investment over 90 days.

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

Fidelity Sai Inflationfocused  vs.  Neuberger Berman Small

Fidelity Sai Inflati

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai Inflationfocused are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fidelity Sai may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Neuberger Berman Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neuberger Berman Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Fidelity Sai and Neuberger Berman

The main advantage of trading using opposite Fidelity Sai and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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 Fidelity Sai Inflationfocused and Neuberger Berman Small 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 Global Correlations module to find global opportunities by holding instruments from different markets.