Correlation Between Neuberger Berman and Ubs Emerging

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

By analyzing existing cross correlation between Neuberger Berman Real and Ubs Emerging Markets, you can compare the effects of market volatilities on Neuberger Berman and Ubs Emerging 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 Ubs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Ubs Emerging.

Diversification Opportunities for Neuberger Berman and Ubs Emerging

0.59

Correlation Coefficient

Neuberger Berman  Ubs Emerging

Very weak diversification

The 3 months correlation between Neuberger and Ubs is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Real and Ubs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Emerging Markets 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 Real are associated (or correlated) with Ubs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Emerging Markets has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Ubs Emerging go up and down completely randomly.

Pair Corralation between Neuberger Berman and Ubs Emerging

Assuming the 90 days horizon Neuberger Berman is expected to generate 4.42 times less return on investment than Ubs Emerging. But when comparing it to its historical volatility, Neuberger Berman Real is 1.01 times less risky than Ubs Emerging. It trades about 0.04 of its potential returns per unit of risk. Ubs Emerging Markets is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  744.00  in Ubs Emerging Markets on December 20, 2024 and sell it today you would earn a total of  78.00  from holding Ubs Emerging Markets or generate 10.48% return on investment over 90 days.

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

Neuberger Berman Real  vs.  Ubs Emerging Markets

Neuberger Berman Real

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Real are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. 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.

Ubs Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ubs Emerging Markets are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ubs Emerging may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Neuberger Berman and Ubs Emerging

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

The idea behind Neuberger Berman Real and Ubs Emerging Markets 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.