Correlation Between Neuberger Berman and Matthews China
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Matthews China 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 Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman ETF and Matthews China Discovery, you can compare the effects of market volatilities on Neuberger Berman and Matthews China 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 Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Matthews China.
Diversification Opportunities for Neuberger Berman and Matthews China
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Neuberger and Matthews is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman ETF and Matthews China Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China Discovery 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 ETF are associated (or correlated) with Matthews China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews China Discovery has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Matthews China go up and down completely randomly.
Pair Corralation between Neuberger Berman and Matthews China
Given the investment horizon of 90 days Neuberger Berman is expected to generate 3.79 times less return on investment than Matthews China. But when comparing it to its historical volatility, Neuberger Berman ETF is 1.42 times less risky than Matthews China. It trades about 0.11 of its potential returns per unit of risk. Matthews China Discovery is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,514 in Matthews China Discovery on November 4, 2024 and sell it today you would earn a total of 184.00 from holding Matthews China Discovery or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman ETF vs. Matthews China Discovery
Performance |
| Timeline |
| Neuberger Berman ETF |
| Matthews China Discovery |
Neuberger Berman and Matthews China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Matthews China
The main advantage of trading using opposite Neuberger Berman and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Matthews China 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 Matthews China will offset losses from the drop in Matthews China's long position.| Neuberger Berman vs. Matthews China Discovery | Neuberger Berman vs. Matthews Emerging Markets | Neuberger Berman vs. Morgan Stanley Pathway | Neuberger Berman vs. Fidelity Small Mid Cap |
| Matthews China vs. Matthews Emerging Markets | Matthews China vs. Morgan Stanley Pathway | Matthews China vs. Neuberger Berman ETF | Matthews China vs. Fidelity Small Mid Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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