Correlation Between Eagle Capital and Neuberger Berman

Can any of the company-specific risk be diversified away by investing in both Eagle 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 Eagle 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 Eagle Capital Growth and Neuberger Berman California, you can compare the effects of market volatilities on Eagle 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 Eagle Capital with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Neuberger Berman.

Diversification Opportunities for Eagle Capital and Neuberger Berman

-0.31

Correlation Coefficient

Eagle Capital  Neuberger Berman

Very good diversification

The 3 months correlation between Eagle and Neuberger is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Neuberger Berman California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Cal and Eagle 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 Eagle Capital Growth 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 Cal has no effect on the direction of Eagle Capital i.e., Eagle Capital and Neuberger Berman go up and down completely randomly.

Pair Corralation between Eagle Capital and Neuberger Berman

If you would invest  1,085  in Neuberger Berman California on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Neuberger Berman California or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Eagle Capital Growth  vs.  Neuberger Berman California

Eagle Capital Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eagle Capital Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eagle Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Neuberger Berman Cal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman California has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental drivers, Neuberger Berman is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Eagle Capital and Neuberger Berman

The main advantage of trading using opposite Eagle Capital and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle 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 Eagle Capital Growth and Neuberger Berman California 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.