Correlation Between Neuberger Berman and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Dunham 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 Dunham Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Income and Dunham Emerging Markets, you can compare the effects of market volatilities on Neuberger Berman and Dunham 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 Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Dunham Emerging.
Diversification Opportunities for Neuberger Berman and Dunham Emerging
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Neuberger and Dunham is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Dunham Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham 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 Income are associated (or correlated) with Dunham Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Emerging Markets has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Dunham Emerging go up and down completely randomly.
Pair Corralation between Neuberger Berman and Dunham Emerging
Assuming the 90 days horizon Neuberger Berman Income is expected to generate 0.29 times more return on investment than Dunham Emerging. However, Neuberger Berman Income is 3.47 times less risky than Dunham Emerging. It trades about -0.3 of its potential returns per unit of risk. Dunham Emerging Markets is currently generating about -0.16 per unit of risk. If you would invest 773.00 in Neuberger Berman Income on October 11, 2024 and sell it today you would lose (9.00) from holding Neuberger Berman Income or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Income vs. Dunham Emerging Markets
Performance |
| Timeline |
| Neuberger Berman Income |
| Dunham Emerging Markets |
Neuberger Berman and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Dunham Emerging
The main advantage of trading using opposite Neuberger Berman and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Dunham 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 Dunham Emerging will offset losses from the drop in Dunham Emerging's long position.| Neuberger Berman vs. Inverse Government Long | Neuberger Berman vs. Davis Government Bond | Neuberger Berman vs. Ab Government Exchange | Neuberger Berman vs. Lord Abbett Government |
| Dunham Emerging vs. Virtus High Yield | Dunham Emerging vs. Strategic Advisers Income | Dunham Emerging vs. Neuberger Berman Income | Dunham Emerging vs. Buffalo High Yield |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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