Correlation Between Great Lakes and Neuberger Berman

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

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

Diversification Opportunities for Great Lakes and Neuberger Berman

0.0

Correlation Coefficient

Great Lakes  Neuberger Berman

Pay attention - limited upside

The 3 months correlation between Great and Neuberger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Great Lakes Disciplined and Neuberger Berman Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Real and Great Lakes 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 Great Lakes Disciplined 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 Real has no effect on the direction of Great Lakes i.e., Great Lakes and Neuberger Berman go up and down completely randomly.

Pair Corralation between Great Lakes and Neuberger Berman

If you would invest  921.00  in Great Lakes Disciplined on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Great Lakes Disciplined or generate 0.0% return on investment over 90 days.

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

Great Lakes Disciplined  vs.  Neuberger Berman Real

Great Lakes Disciplined

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Great Lakes Disciplined has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Great Lakes is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Neuberger Berman Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental 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 Great Lakes and Neuberger Berman

The main advantage of trading using opposite Great Lakes and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Lakes 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 Great Lakes Disciplined and Neuberger Berman Real 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.