Correlation Between Siit Large and Neuberger Berman

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

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

Diversification Opportunities for Siit Large and Neuberger Berman

0.51

Correlation Coefficient

Siit Large  Neuberger Berman

Very weak diversification

The 3 months correlation between Siit and Neuberger is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Neuberger Berman Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Intl and Siit Large 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 Siit Large Cap 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 Intl has no effect on the direction of Siit Large i.e., Siit Large and Neuberger Berman go up and down completely randomly.

Pair Corralation between Siit Large and Neuberger Berman

Assuming the 90 days horizon Siit Large Cap is expected to under-perform the Neuberger Berman. In addition to that, Siit Large is 4.94 times more volatile than Neuberger Berman Intl. It trades about -0.22 of its total potential returns per unit of risk. Neuberger Berman Intl is currently generating about -0.4 per unit of volatility. If you would invest  1,316  in Neuberger Berman Intl on October 12, 2024 and sell it today you would lose (69.00) from holding Neuberger Berman Intl or give up 5.24% of portfolio value over 90 days.

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

Siit Large Cap  vs.  Neuberger Berman Intl

Siit Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Neuberger Berman Intl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman Intl has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Siit Large and Neuberger Berman

The main advantage of trading using opposite Siit Large and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large 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 Siit Large Cap and Neuberger Berman Intl 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.