Correlation Between Xtrackers International and Neuberger Berman

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

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

Diversification Opportunities for Xtrackers International and Neuberger Berman

0.0

Correlation Coefficient

Xtrackers International  Neuberger Berman

Pay attention - limited upside

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

Pair Corralation between Xtrackers International and Neuberger Berman

If you would invest  2,007  in Xtrackers International Real on December 4, 2024 and sell it today you would earn a total of  11.00  from holding Xtrackers International Real or generate 0.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xtrackers International Real  vs.  Neuberger Berman

Xtrackers International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xtrackers International Real has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Xtrackers International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Neuberger Berman

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neuberger Berman has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Xtrackers International and Neuberger Berman

The main advantage of trading using opposite Xtrackers International and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers International 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 Xtrackers International Real and Neuberger Berman 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.