Correlation Between Neuberger Berman and Summit Global
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Summit Global 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 Summit Global 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 Summit Global Investments, you can compare the effects of market volatilities on Neuberger Berman and Summit Global 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 Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Summit Global.
Diversification Opportunities for Neuberger Berman and Summit Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Summit is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments 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 Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Summit Global go up and down completely randomly.
Pair Corralation between Neuberger Berman and Summit Global
Assuming the 90 days horizon Neuberger Berman is expected to generate 1.02 times less return on investment than Summit Global. But when comparing it to its historical volatility, Neuberger Berman Income is 3.07 times less risky than Summit Global. It trades about 0.13 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,130 in Summit Global Investments on September 14, 2024 and sell it today you would earn a total of 61.00 from holding Summit Global Investments or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.15% |
| Values | Daily Returns |
Neuberger Berman Income vs. Summit Global Investments
Performance |
| Timeline |
| Neuberger Berman Income |
| Summit Global Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Neuberger Berman and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Summit Global
The main advantage of trading using opposite Neuberger Berman and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Neuberger Berman vs. Smallcap Growth Fund | Neuberger Berman vs. Artisan Small Cap | Neuberger Berman vs. Vy Baron Growth | Neuberger Berman vs. Qs Growth Fund |
| Summit Global vs. Ambrus Core Bond | Summit Global vs. T Rowe Price | Summit Global vs. Doubleline Yield Opportunities | Summit Global vs. Ishares Municipal Bond |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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