Correlation Between Neuberger Berman and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Akre Focus 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 Neuberger Berman and Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Large and Akre Focus Fund, you can compare the effects of market volatilities on Neuberger Berman and Akre Focus 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 Neuberger Berman with a short position of Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Akre Focus.
Diversification Opportunities for Neuberger Berman and Akre Focus
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Neuberger and Akre is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Large and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund and Neuberger Berman 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 Neuberger Berman Large are associated (or correlated) with Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Akre Focus go up and down completely randomly.
Pair Corralation between Neuberger Berman and Akre Focus
Assuming the 90 days horizon Neuberger Berman is expected to generate 2.67 times less return on investment than Akre Focus. But when comparing it to its historical volatility, Neuberger Berman Large is 1.32 times less risky than Akre Focus. It trades about 0.05 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,759 in Akre Focus Fund on September 12, 2024 and sell it today you would earn a total of 2,232 from holding Akre Focus Fund or generate 46.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Large vs. Akre Focus Fund
Performance |
| Timeline |
| Neuberger Berman Large |
| Akre Focus Fund |
Neuberger Berman and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Akre Focus
The main advantage of trading using opposite Neuberger Berman and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Neuberger Berman vs. Guidepath Managed Futures | Neuberger Berman vs. Lord Abbett Inflation | Neuberger Berman vs. Fidelity Sai Inflationfocused | Neuberger Berman vs. Federated Hermes Inflation |
| Akre Focus vs. Akre Focus Fund | Akre Focus vs. Akre Focus Fund | Akre Focus vs. T Rowe Price | Akre Focus vs. Aqr Diversified Arbitrage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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