Correlation Between Applied Finance and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Applied Finance 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 Applied Finance and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Finance Explorer and Neuberger Berman Intermediate, you can compare the effects of market volatilities on Applied Finance 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 Applied Finance with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Neuberger Berman.
Diversification Opportunities for Applied Finance and Neuberger Berman
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Applied and Neuberger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and Neuberger Berman Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Int and Applied Finance 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 Applied Finance Explorer 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 Int has no effect on the direction of Applied Finance i.e., Applied Finance and Neuberger Berman go up and down completely randomly.
Pair Corralation between Applied Finance and Neuberger Berman
Assuming the 90 days horizon Applied Finance Explorer is expected to generate 2.73 times more return on investment than Neuberger Berman. However, Applied Finance is 2.73 times more volatile than Neuberger Berman Intermediate. It trades about 0.27 of its potential returns per unit of risk. Neuberger Berman Intermediate is currently generating about 0.03 per unit of risk. If you would invest 2,169 in Applied Finance Explorer on November 3, 2024 and sell it today you would earn a total of 114.00 from holding Applied Finance Explorer or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Finance Explorer vs. Neuberger Berman Intermediate
Performance |
| Timeline |
| Applied Finance Explorer |
| Neuberger Berman Int |
Applied Finance and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Finance and Neuberger Berman
The main advantage of trading using opposite Applied Finance and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Finance 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.| Applied Finance vs. Thrivent Small Cap | Applied Finance vs. Applied Finance Select | Applied Finance vs. Parnassus Endeavor Fund | Applied Finance vs. Queens Road Small |
| Neuberger Berman vs. Payden High Income | Neuberger Berman vs. Virtus High Yield | Neuberger Berman vs. Tiaa Cref High Yield | Neuberger Berman vs. Msift High Yield |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |