Correlation Between Spectrum Fund and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Spectrum Fund 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 Spectrum Fund and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Fund Retail and Neuberger Berman Long, you can compare the effects of market volatilities on Spectrum Fund 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 Spectrum Fund with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Fund and Neuberger Berman.
Diversification Opportunities for Spectrum Fund and Neuberger Berman
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Spectrum and Neuberger is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Fund Retail and Neuberger Berman Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Long and Spectrum Fund 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 Spectrum Fund Retail 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 Long has no effect on the direction of Spectrum Fund i.e., Spectrum Fund and Neuberger Berman go up and down completely randomly.
Pair Corralation between Spectrum Fund and Neuberger Berman
Assuming the 90 days horizon Spectrum Fund Retail is expected to generate 2.74 times more return on investment than Neuberger Berman. However, Spectrum Fund is 2.74 times more volatile than Neuberger Berman Long. It trades about 0.13 of its potential returns per unit of risk. Neuberger Berman Long is currently generating about 0.26 per unit of risk. If you would invest 1,473 in Spectrum Fund Retail on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Spectrum Fund Retail or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrum Fund Retail vs. Neuberger Berman Long
Performance |
| Timeline |
| Spectrum Fund Retail |
| Neuberger Berman Long |
Spectrum Fund and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Fund and Neuberger Berman
The main advantage of trading using opposite Spectrum Fund and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Fund 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.| Spectrum Fund vs. Quantex Fund Adviser | Spectrum Fund vs. Quantex Fund Institutional | Spectrum Fund vs. Infrastructure Fund Adviser | Spectrum Fund vs. Infrastructure Fund Institutional |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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