Correlation Between Neuberger Berman and Cohen
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Cohen 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 Cohen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Next and Cohen And Steers, you can compare the effects of market volatilities on Neuberger Berman and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Cohen.
Diversification Opportunities for Neuberger Berman and Cohen
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Neuberger and Cohen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Next and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers 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 Next are associated (or correlated) with Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Cohen go up and down completely randomly.
Pair Corralation between Neuberger Berman and Cohen
Given the investment horizon of 90 days Neuberger Berman Next is expected to generate 1.21 times more return on investment than Cohen. However, Neuberger Berman is 1.21 times more volatile than Cohen And Steers. It trades about 0.22 of its potential returns per unit of risk. Cohen And Steers is currently generating about 0.07 per unit of risk. If you would invest 1,253 in Neuberger Berman Next on August 24, 2024 and sell it today you would earn a total of 62.00 from holding Neuberger Berman Next or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Next vs. Cohen And Steers
Performance |
| Timeline |
| Neuberger Berman Next |
| Cohen And Steers |
Neuberger Berman and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Cohen
The main advantage of trading using opposite Neuberger Berman and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.| Neuberger Berman vs. Highland Floating Rate | Neuberger Berman vs. SRH Total Return | Neuberger Berman vs. Nuveen Municipal Credit | Neuberger Berman vs. Doubleline Income Solutions |
| Cohen vs. MFS Investment Grade | Cohen vs. Eaton Vance National | Cohen vs. Blackrock Muniyield Quality | Cohen vs. Munivest Fund |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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