Correlation Between Neuberger Berman and Goldman Sachs

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Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Goldman Sachs 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 Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Income and Goldman Sachs Clean, you can compare the effects of market volatilities on Neuberger Berman and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Goldman Sachs.

Diversification Opportunities for Neuberger Berman and Goldman Sachs

NeubergerGoldmanDiversified AwayNeubergerGoldmanDiversified Away100%
-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Neuberger and Goldman is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean 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 Income are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Clean has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Goldman Sachs go up and down completely randomly.

Pair Corralation between Neuberger Berman and Goldman Sachs

Assuming the 90 days horizon Neuberger Berman Income is expected to generate 0.17 times more return on investment than Goldman Sachs. However, Neuberger Berman Income is 6.01 times less risky than Goldman Sachs. It trades about 0.16 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.21 per unit of risk. If you would invest  753.00  in Neuberger Berman Income on October 25, 2024 and sell it today you would earn a total of  15.00  from holding Neuberger Berman Income or generate 1.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Neuberger Berman Income  vs.  Goldman Sachs Clean

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-50
JavaScript chart by amCharts 3.21.15NHIEX GCEGX
       Timeline  
Neuberger Berman Income 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Income are ranked lower than 12 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan7.547.567.587.67.627.647.667.68
Goldman Sachs Clean 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Goldman Sachs Clean has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan88.28.48.68.899.29.4

Neuberger Berman and Goldman Sachs Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.59-0.37-0.15-0.05420.0027120.05980.170.390.610.83 2468
JavaScript chart by amCharts 3.21.15NHIEX GCEGX
       Returns  

Pair Trading with Neuberger Berman and Goldman Sachs

The main advantage of trading using opposite Neuberger Berman and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.
The idea behind Neuberger Berman Income and Goldman Sachs Clean 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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