Correlation Between Neuberger Berman and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Voya Vacs 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 Voya Vacs 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 Voya Vacs Index, you can compare the effects of market volatilities on Neuberger Berman and Voya Vacs 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 Voya Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Voya Vacs.
Diversification Opportunities for Neuberger Berman and Voya Vacs
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Neuberger and Voya is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Income and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Voya Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Voya Vacs go up and down completely randomly.
Pair Corralation between Neuberger Berman and Voya Vacs
Assuming the 90 days horizon Neuberger Berman is expected to generate 2.08 times less return on investment than Voya Vacs. But when comparing it to its historical volatility, Neuberger Berman Income is 3.95 times less risky than Voya Vacs. It trades about 0.17 of its potential returns per unit of risk. Voya Vacs Index is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Voya Vacs Index on November 3, 2024 and sell it today you would earn a total of 212.00 from holding Voya Vacs Index or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Neuberger Berman Income vs. Voya Vacs Index
Performance |
| Timeline |
| Neuberger Berman Income |
| Voya Vacs Index |
Neuberger Berman and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Voya Vacs
The main advantage of trading using opposite Neuberger Berman and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Voya Vacs 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 Voya Vacs will offset losses from the drop in Voya Vacs' long position.| Neuberger Berman vs. Deutsche Health And | Neuberger Berman vs. Allianzgi Health Sciences | Neuberger Berman vs. Blackrock Health Sciences | Neuberger Berman vs. Tekla Healthcare Investors |
| Voya Vacs vs. T Rowe Price | Voya Vacs vs. Growth Allocation Fund | Voya Vacs vs. Mid Cap Growth | Voya Vacs vs. Eip Growth And |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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