Correlation Between Neuberger Berman and Fidelity Capital
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Fidelity Capital 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 Fidelity Capital 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 Fidelity Capital Income, you can compare the effects of market volatilities on Neuberger Berman and Fidelity Capital 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 Fidelity Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Fidelity Capital.
Diversification Opportunities for Neuberger Berman and Fidelity Capital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Fidelity is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Fidelity Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Capital Income 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 Fidelity Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Capital Income has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Fidelity Capital go up and down completely randomly.
Pair Corralation between Neuberger Berman and Fidelity Capital
Assuming the 90 days horizon Neuberger Berman Income is expected to generate 0.63 times more return on investment than Fidelity Capital. However, Neuberger Berman Income is 1.58 times less risky than Fidelity Capital. It trades about 0.17 of its potential returns per unit of risk. Fidelity Capital Income is currently generating about 0.09 per unit of risk. If you would invest 705.00 in Neuberger Berman Income on December 4, 2024 and sell it today you would earn a total of 65.00 from holding Neuberger Berman Income or generate 9.22% 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. Fidelity Capital Income
Performance |
| Timeline |
| Neuberger Berman Income |
| Fidelity Capital Income |
Neuberger Berman and Fidelity Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Fidelity Capital
The main advantage of trading using opposite Neuberger Berman and Fidelity Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Fidelity Capital 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 Fidelity Capital will offset losses from the drop in Fidelity Capital's long position.| Neuberger Berman vs. Clearbridge Energy Mlp | Neuberger Berman vs. Hennessy Bp Energy | Neuberger Berman vs. Short Oil Gas | Neuberger Berman vs. Alpsalerian Energy Infrastructure |
| Fidelity Capital vs. Fidelity High Income | Fidelity Capital vs. Fidelity New Markets | Fidelity Capital vs. Fidelity Total Bond | Fidelity Capital vs. Fidelity Balanced 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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