Correlation Between Chia and Neuberger Berman

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

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

Diversification Opportunities for Chia and Neuberger Berman

0.25

Correlation Coefficient

Chia  Neuberger Berman

Modest diversification

The 3 months correlation between Chia and Neuberger is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Neuberger Berman Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Guardian and Chia 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 Chia 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 Guardian has no effect on the direction of Chia i.e., Chia and Neuberger Berman go up and down completely randomly.

Pair Corralation between Chia and Neuberger Berman

Assuming the 90 days trading horizon Chia is expected to under-perform the Neuberger Berman. In addition to that, Chia is 5.17 times more volatile than Neuberger Berman Guardian. It trades about -0.12 of its total potential returns per unit of risk. Neuberger Berman Guardian is currently generating about -0.1 per unit of volatility. If you would invest  2,977  in Neuberger Berman Guardian on December 22, 2024 and sell it today you would lose (230.00) from holding Neuberger Berman Guardian or give up 7.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.75%
Values	Daily Returns

Chia  vs.  Neuberger Berman Guardian

Chia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Chia shareholders.

Neuberger Berman Guardian

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neuberger Berman Guardian has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Chia and Neuberger Berman

The main advantage of trading using opposite Chia and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia 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 Chia and Neuberger Berman Guardian 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.