Correlation Between Neuberger Berman and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Eaton Vance 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 Eaton Vance 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 Eaton Vance Floating Rate, you can compare the effects of market volatilities on Neuberger Berman and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Eaton Vance.
Diversification Opportunities for Neuberger Berman and Eaton Vance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Eaton is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Floating has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Eaton Vance go up and down completely randomly.
Pair Corralation between Neuberger Berman and Eaton Vance
Assuming the 90 days horizon Neuberger Berman Income is expected to generate 2.06 times more return on investment than Eaton Vance. However, Neuberger Berman is 2.06 times more volatile than Eaton Vance Floating Rate. It trades about 0.16 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.1 per unit of risk. If you would invest 770.00 in Neuberger Berman Income on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Neuberger Berman Income or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Income vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Neuberger Berman Income |
| Eaton Vance Floating |
Neuberger Berman and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Eaton Vance
The main advantage of trading using opposite Neuberger Berman and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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