Correlation Between Neuberger Berman and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Aqr Long 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 Aqr Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman High and Aqr Long Short Equity, you can compare the effects of market volatilities on Neuberger Berman and Aqr Long 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 Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Aqr Long.
Diversification Opportunities for Neuberger Berman and Aqr Long
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Aqr is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short 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 High are associated (or correlated) with Aqr Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Aqr Long go up and down completely randomly.
Pair Corralation between Neuberger Berman and Aqr Long
Assuming the 90 days horizon Neuberger Berman is expected to generate 2.54 times less return on investment than Aqr Long. But when comparing it to its historical volatility, Neuberger Berman High is 1.7 times less risky than Aqr Long. It trades about 0.15 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,162 in Aqr Long Short Equity on September 12, 2024 and sell it today you would earn a total of 501.00 from holding Aqr Long Short Equity or generate 43.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Neuberger Berman High vs. Aqr Long Short Equity
Performance |
| Timeline |
| Neuberger Berman High |
| Aqr Long Short |
Neuberger Berman and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Aqr Long
The main advantage of trading using opposite Neuberger Berman and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Aqr Long 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 Aqr Long will offset losses from the drop in Aqr Long's long position.| Neuberger Berman vs. Aqr Long Short Equity | Neuberger Berman vs. Virtus Multi Sector Short | Neuberger Berman vs. Prudential Short Duration | Neuberger Berman vs. Blackrock Short Term Inflat Protected |
| Aqr Long vs. Diamond Hill Long Short | Aqr Long vs. Pimco Rae Worldwide | Aqr Long vs. SCOR PK | Aqr Long vs. Morningstar Unconstrained Allocation |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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