Correlation Between Neuberger Berman and Nuveen Senior

Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Nuveen Senior 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 Nuveen Senior 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 Nuveen Senior Income, you can compare the effects of market volatilities on Neuberger Berman and Nuveen Senior 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 Nuveen Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Nuveen Senior.

Diversification Opportunities for Neuberger Berman and Nuveen Senior

-0.83

Correlation Coefficient

Neuberger Berman  Nuveen Senior

Pay attention - limited upside

The 3 months correlation between Neuberger and Nuveen is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Nuveen Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Senior Income 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 Nuveen Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Senior Income has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Nuveen Senior go up and down completely randomly.

Pair Corralation between Neuberger Berman and Nuveen Senior

If you would invest  746.00  in Neuberger Berman High on September 3, 2024 and sell it today you would earn a total of  36.00  from holding Neuberger Berman High or generate 4.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	0.8%
Values	Daily Returns

Neuberger Berman High  vs.  Nuveen Senior Income

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Nuveen Senior Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Senior Income has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Nuveen Senior is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Neuberger Berman and Nuveen Senior

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

The idea behind Neuberger Berman High and Nuveen Senior Income 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..