Correlation Between Barings Emerging and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Barings Emerging and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Neuberger Berman Real, you can compare the effects of market volatilities on Barings Emerging 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 Barings Emerging with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Neuberger Berman.
Diversification Opportunities for Barings Emerging and Neuberger Berman
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Neuberger is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Neuberger Berman Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Real and Barings Emerging 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 Barings Emerging Markets 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 Real has no effect on the direction of Barings Emerging i.e., Barings Emerging and Neuberger Berman go up and down completely randomly.
Pair Corralation between Barings Emerging and Neuberger Berman
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.23 times more return on investment than Neuberger Berman. However, Barings Emerging Markets is 4.36 times less risky than Neuberger Berman. It trades about 0.18 of its potential returns per unit of risk. Neuberger Berman Real is currently generating about 0.03 per unit of risk. If you would invest 741.00 in Barings Emerging Markets on October 23, 2024 and sell it today you would earn a total of 6.00 from holding Barings Emerging Markets or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Neuberger Berman Real
Performance |
| Timeline |
| Barings Emerging Markets |
| Neuberger Berman Real |
Barings Emerging and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Neuberger Berman
The main advantage of trading using opposite Barings Emerging and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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.| Barings Emerging vs. Deutsche Gold Precious | Barings Emerging vs. Sprott Gold Equity | Barings Emerging vs. First Eagle Gold | Barings Emerging vs. Fidelity Advisor Gold |
| Neuberger Berman vs. Legg Mason Partners | Neuberger Berman vs. Aqr Sustainable Long Short | Neuberger Berman vs. Barings Emerging Markets | Neuberger Berman vs. Franklin Emerging Market |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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