Correlation Between Neuberger Berman and Matthews Emerging
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Matthews Emerging 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 Emerging 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 Emerging Markets, you can compare the effects of market volatilities on Neuberger Berman and Matthews Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Matthews Emerging.
Diversification Opportunities for Neuberger Berman and Matthews Emerging
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Neuberger and Matthews is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman ETF and Matthews Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Emerging Markets 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Emerging Markets has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Matthews Emerging go up and down completely randomly.
Pair Corralation between Neuberger Berman and Matthews Emerging
Given the investment horizon of 90 days Neuberger Berman ETF is expected to generate 0.89 times more return on investment than Matthews Emerging. However, Neuberger Berman ETF is 1.13 times less risky than Matthews Emerging. It trades about 0.06 of its potential returns per unit of risk. Matthews Emerging Markets is currently generating about -0.21 per unit of risk. If you would invest 2,533 in Neuberger Berman ETF on October 31, 2024 and sell it today you would earn a total of 22.00 from holding Neuberger Berman ETF or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman ETF vs. Matthews Emerging Markets
Performance |
| Timeline |
| Neuberger Berman ETF |
| Matthews Emerging Markets |
Neuberger Berman and Matthews Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Matthews Emerging
The main advantage of trading using opposite Neuberger Berman and Matthews Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Matthews Emerging 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 Emerging will offset losses from the drop in Matthews Emerging'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 Emerging vs. Matthews China Discovery | Matthews Emerging vs. Morgan Stanley Pathway | Matthews Emerging vs. Neuberger Berman ETF | Matthews Emerging 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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