Correlation Between Neuberger Berman and Neuberger Berman

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

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

Diversification Opportunities for Neuberger Berman and Neuberger Berman

-0.36

Correlation Coefficient

Neuberger Berman  Neuberger Berman

Very good diversification

The 3 months correlation between Neuberger and Neuberger is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Sustainable and Neuberger Berman Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Intl 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 Sustainable are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Intl has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Neuberger Berman go up and down completely randomly.

Pair Corralation between Neuberger Berman and Neuberger Berman

Assuming the 90 days horizon Neuberger Berman Sustainable is expected to generate 1.84 times more return on investment than Neuberger Berman. However, Neuberger Berman is 1.84 times more volatile than Neuberger Berman Intl. It trades about -0.15 of its potential returns per unit of risk. Neuberger Berman Intl is currently generating about -0.31 per unit of risk. If you would invest  5,198  in Neuberger Berman Sustainable on September 28, 2024 and sell it today you would lose (254.00) from holding Neuberger Berman Sustainable or give up 4.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Neuberger Berman Sustainable  vs.  Neuberger Berman Intl

Neuberger Berman Sus

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Sustainable are ranked lower than 1 (%) 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.

Neuberger Berman Intl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman Intl 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 basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Neuberger Berman and Neuberger Berman

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

The idea behind Neuberger Berman Sustainable and Neuberger Berman Intl 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.

Check out your portfolio center.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.