Correlation Between AIM ETF and Neuberger Berman

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

By analyzing existing cross correlation between AIM ETF Products and Neuberger Berman ETF, you can compare the effects of market volatilities on AIM ETF 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 AIM ETF with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Neuberger Berman.

Diversification Opportunities for AIM ETF and Neuberger Berman

-0.47

Correlation Coefficient

AIM ETF  Neuberger Berman

Very good diversification

The 3 months correlation between AIM and Neuberger is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Neuberger Berman ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman ETF and AIM ETF 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 AIM ETF Products 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 ETF has no effect on the direction of AIM ETF i.e., AIM ETF and Neuberger Berman go up and down completely randomly.

Pair Corralation between AIM ETF and Neuberger Berman

Given the investment horizon of 90 days AIM ETF Products is expected to generate 78.76 times more return on investment than Neuberger Berman. However, AIM ETF is 78.76 times more volatile than Neuberger Berman ETF. It trades about 0.08 of its potential returns per unit of risk. Neuberger Berman ETF is currently generating about 0.05 per unit of risk. If you would invest  0.01  in AIM ETF Products on October 9, 2024 and sell it today you would earn a total of  2,673  from holding AIM ETF Products or generate 2.67299E7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	54.87%
Values	Daily Returns

AIM ETF Products  vs.  Neuberger Berman ETF

AIM ETF Products

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AIM ETF Products are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, AIM ETF is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Neuberger Berman ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Etf's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

Pair Trading with AIM ETF and Neuberger Berman

The main advantage of trading using opposite AIM ETF and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF 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 AIM ETF Products and Neuberger Berman ETF 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.