Correlation Between Highland Long/short and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Highland Long/short 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 Highland Long/short and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Longshort Healthcare and Neuberger Berman Income, you can compare the effects of market volatilities on Highland Long/short 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 Highland Long/short with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Neuberger Berman.
Diversification Opportunities for Highland Long/short and Neuberger Berman
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highland and Neuberger is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Neuberger Berman Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Income and Highland Long/short 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 Highland Longshort Healthcare 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 Income has no effect on the direction of Highland Long/short i.e., Highland Long/short and Neuberger Berman go up and down completely randomly.
Pair Corralation between Highland Long/short and Neuberger Berman
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 0.7 times more return on investment than Neuberger Berman. However, Highland Longshort Healthcare is 1.42 times less risky than Neuberger Berman. It trades about 0.44 of its potential returns per unit of risk. Neuberger Berman Income is currently generating about 0.26 per unit of risk. If you would invest 1,638 in Highland Longshort Healthcare on October 23, 2024 and sell it today you would earn a total of 23.00 from holding Highland Longshort Healthcare or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Neuberger Berman Income
Performance |
| Timeline |
| Highland Long/short |
| Neuberger Berman Income |
Highland Long/short and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Long/short and Neuberger Berman
The main advantage of trading using opposite Highland Long/short and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short 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.| Highland Long/short vs. Victory Incore Fund | Highland Long/short vs. Nasdaq 100 Profund Nasdaq 100 | Highland Long/short vs. Alternative Asset Allocation | Highland Long/short vs. Growth Fund Of |
| Neuberger Berman vs. Dreyfus High Yield | Neuberger Berman vs. Blackrock High Yield | Neuberger Berman vs. Jpmorgan High Yield | Neuberger Berman vs. Federated 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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