Correlation Between Neuberger Berman and Oklahoma College

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

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

Diversification Opportunities for Neuberger Berman and Oklahoma College

-0.69

Correlation Coefficient

Neuberger Berman  Oklahoma College

Excellent diversification

The 3 months correlation between Neuberger and Oklahoma is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings 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 High are associated (or correlated) with Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Oklahoma College go up and down completely randomly.

Pair Corralation between Neuberger Berman and Oklahoma College

Considering the 90-day investment horizon Neuberger Berman is expected to generate 6.36 times less return on investment than Oklahoma College. But when comparing it to its historical volatility, Neuberger Berman High is 1.6 times less risky than Oklahoma College. It trades about 0.02 of its potential returns per unit of risk. Oklahoma College Savings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,488  in Oklahoma College Savings on September 23, 2024 and sell it today you would earn a total of  191.00  from holding Oklahoma College Savings or generate 12.84% return on investment over 90 days.

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

Neuberger Berman High  vs.  Oklahoma College Savings

Neuberger Berman High

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman High has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Oklahoma College Savings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oklahoma College Savings are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Oklahoma College may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Neuberger Berman and Oklahoma College

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

The idea behind Neuberger Berman High and Oklahoma College Savings 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.