Correlation Between Franklin Growth and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Franklin Growth 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 Franklin Growth and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Neuberger Berman International, you can compare the effects of market volatilities on Franklin Growth 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 Franklin Growth with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Neuberger Berman.
Diversification Opportunities for Franklin Growth and Neuberger Berman
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Neuberger is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Neuberger Berman International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Int and Franklin Growth 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 Franklin Growth Opportunities 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 Franklin Growth i.e., Franklin Growth and Neuberger Berman go up and down completely randomly.
Pair Corralation between Franklin Growth and Neuberger Berman
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.48 times more return on investment than Neuberger Berman. However, Franklin Growth is 1.48 times more volatile than Neuberger Berman International. It trades about 0.09 of its potential returns per unit of risk. Neuberger Berman International is currently generating about -0.1 per unit of risk. If you would invest 6,226 in Franklin Growth Opportunities on September 13, 2024 and sell it today you would earn a total of 226.00 from holding Franklin Growth Opportunities or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Neuberger Berman International
Performance |
| Timeline |
| Franklin Growth Oppo |
| Neuberger Berman Int |
Franklin Growth and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Neuberger Berman
The main advantage of trading using opposite Franklin Growth and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth 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.| Franklin Growth vs. Gmo High Yield | Franklin Growth vs. Pax High Yield | Franklin Growth vs. Fidelity Capital Income | Franklin Growth vs. Jpmorgan High Yield |
| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |