Correlation Between Neuberger Berman and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Icon Financial 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 Icon Financial 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 Icon Financial Fund, you can compare the effects of market volatilities on Neuberger Berman and Icon Financial 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 Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Icon Financial.
Diversification Opportunities for Neuberger Berman and Icon Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neuberger and Icon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial 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 Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Icon Financial go up and down completely randomly.
Pair Corralation between Neuberger Berman and Icon Financial
Assuming the 90 days horizon Neuberger Berman Income is expected to generate 0.2 times more return on investment than Icon Financial. However, Neuberger Berman Income is 5.01 times less risky than Icon Financial. It trades about -0.29 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.23 per unit of risk. If you would invest 770.00 in Neuberger Berman Income on October 15, 2024 and sell it today you would lose (8.00) from holding Neuberger Berman Income or give up 1.04% 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. Icon Financial Fund
Performance |
| Timeline |
| Neuberger Berman Income |
| Icon Financial |
Neuberger Berman and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Icon Financial
The main advantage of trading using opposite Neuberger Berman and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Neuberger Berman vs. Fisher Large Cap | Neuberger Berman vs. Guidemark Large Cap | Neuberger Berman vs. Pace Large Value | Neuberger Berman vs. Fundamental Large Cap |
| Icon Financial vs. Barings High Yield | Icon Financial vs. Siit High Yield | Icon Financial vs. Lgm Risk Managed | Icon Financial vs. Msift 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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