Correlation Between Neuberger Berman and Symmetry Panoramic

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

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

Diversification Opportunities for Neuberger Berman and Symmetry Panoramic

-0.53

Correlation Coefficient

Neuberger Berman  Symmetry Panoramic

Excellent diversification

The 3 months correlation between Neuberger and Symmetry is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Symmetry Panoramic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symmetry Panoramic Equity 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 Intermediate are associated (or correlated) with Symmetry Panoramic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symmetry Panoramic Equity has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Symmetry Panoramic go up and down completely randomly.

Pair Corralation between Neuberger Berman and Symmetry Panoramic

Assuming the 90 days horizon Neuberger Berman is expected to generate 4.88 times less return on investment than Symmetry Panoramic. But when comparing it to its historical volatility, Neuberger Berman Intermediate is 1.89 times less risky than Symmetry Panoramic. It trades about 0.14 of its potential returns per unit of risk. Symmetry Panoramic Equity is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  1,644  in Symmetry Panoramic Equity on September 5, 2024 and sell it today you would earn a total of  118.00  from holding Symmetry Panoramic Equity or generate 7.18% return on investment over 90 days.

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

Neuberger Berman Intermediate  vs.  Symmetry Panoramic Equity

Neuberger Berman Int

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman Intermediate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Symmetry Panoramic Equity

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Symmetry Panoramic Equity are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Symmetry Panoramic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Neuberger Berman and Symmetry Panoramic

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

The idea behind Neuberger Berman Intermediate and Symmetry Panoramic Equity 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.