Correlation Between Neuberger Berman and Eagle Mlp

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

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

Diversification Opportunities for Neuberger Berman and Eagle Mlp

0.35

Correlation Coefficient

Neuberger Berman  Eagle Mlp

Weak diversification

The 3 months correlation between Neuberger and Eagle is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Genesis and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy and Neuberger Berman 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 Neuberger Berman Genesis are associated (or correlated) with Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Eagle Mlp go up and down completely randomly.

Pair Corralation between Neuberger Berman and Eagle Mlp

Assuming the 90 days horizon Neuberger Berman Genesis is expected to under-perform the Eagle Mlp. But the mutual fund apears to be less risky and, when comparing its historical volatility, Neuberger Berman Genesis is 1.24 times less risky than Eagle Mlp. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Eagle Mlp Strategy is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,032  in Eagle Mlp Strategy on December 30, 2024 and sell it today you would earn a total of  76.00  from holding Eagle Mlp Strategy or generate 7.36% return on investment over 90 days.

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

Neuberger Berman Genesis  vs.  Eagle Mlp Strategy

Neuberger Berman Genesis

Risk-Adjusted Performance

Very Weak

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

Eagle Mlp Strategy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Neuberger Berman and Eagle Mlp

The main advantage of trading using opposite Neuberger Berman and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp's long position.

The idea behind Neuberger Berman Genesis and Eagle Mlp Strategy 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.