Correlation Between Neuberger Berman and Eagle Capital

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

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

Diversification Opportunities for Neuberger Berman and Eagle Capital

-0.45

Correlation Coefficient

Neuberger Berman  Eagle Capital

Very good diversification

The 3 months correlation between Neuberger and Eagle is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman California and Eagle Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Capital Growth 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 California are associated (or correlated) with Eagle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Capital Growth has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Eagle Capital go up and down completely randomly.

Pair Corralation between Neuberger Berman and Eagle Capital

If you would invest  1,085  in Neuberger Berman California on October 10, 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	Very Weak
Accuracy	4.76%
Values	Daily Returns

Neuberger Berman California  vs.  Eagle Capital Growth

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.

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.

Pair Trading with Neuberger Berman and Eagle Capital

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

The idea behind Neuberger Berman California and Eagle Capital Growth 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.