Correlation Between Eaton Vance and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and Neuberger Berman Next, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Neuberger Berman.
Diversification Opportunities for Eaton Vance and Neuberger Berman
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Neuberger is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Neuberger Berman Next in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Next and Eaton Vance 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 Eaton Vance Senior 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 Next has no effect on the direction of Eaton Vance i.e., Eaton Vance and Neuberger Berman go up and down completely randomly.
Pair Corralation between Eaton Vance and Neuberger Berman
Considering the 90-day investment horizon Eaton Vance is expected to generate 2.97 times less return on investment than Neuberger Berman. But when comparing it to its historical volatility, Eaton Vance Senior is 1.86 times less risky than Neuberger Berman. It trades about 0.2 of its potential returns per unit of risk. Neuberger Berman Next is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,245 in Neuberger Berman Next on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Neuberger Berman Next or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Neuberger Berman Next
Performance |
| Timeline |
| Eaton Vance Senior |
| Neuberger Berman Next |
Eaton Vance and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Neuberger Berman
The main advantage of trading using opposite Eaton Vance and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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