Correlation Between Needham Aggressive and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive 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 Needham Aggressive and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Neuberger Berman Large, you can compare the effects of market volatilities on Needham Aggressive 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 Needham Aggressive with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Neuberger Berman.
Diversification Opportunities for Needham Aggressive and Neuberger Berman
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Needham and Neuberger is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Neuberger Berman Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Large and Needham Aggressive 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 Needham Aggressive Growth 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 Large has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Neuberger Berman go up and down completely randomly.
Pair Corralation between Needham Aggressive and Neuberger Berman
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 2.65 times more return on investment than Neuberger Berman. However, Needham Aggressive is 2.65 times more volatile than Neuberger Berman Large. It trades about 0.16 of its potential returns per unit of risk. Neuberger Berman Large is currently generating about 0.16 per unit of risk. If you would invest 4,834 in Needham Aggressive Growth on August 29, 2024 and sell it today you would earn a total of 306.00 from holding Needham Aggressive Growth or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Neuberger Berman Large
Performance |
| Timeline |
| Needham Aggressive Growth |
| Neuberger Berman Large |
Needham Aggressive and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Neuberger Berman
The main advantage of trading using opposite Needham Aggressive and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive 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.| Needham Aggressive vs. Putnam Equity Income | Needham Aggressive vs. Putnam Growth Opportunities | Needham Aggressive vs. HUMANA INC | Needham Aggressive vs. Aquagold International |
| Neuberger Berman vs. Aqr Long Short Equity | Neuberger Berman vs. Rbc Short Duration | Neuberger Berman vs. Jhancock Short Duration | Neuberger Berman vs. Maryland Short Term Tax Free |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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