Correlation Between Neuberger Berman and Emerald Growth
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Emerald Growth 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 Emerald Growth 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 Emerald Growth Fund, you can compare the effects of market volatilities on Neuberger Berman and Emerald Growth 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 Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Emerald Growth.
Diversification Opportunities for Neuberger Berman and Emerald Growth
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Neuberger and Emerald is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Growth 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 Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Emerald Growth go up and down completely randomly.
Pair Corralation between Neuberger Berman and Emerald Growth
Considering the 90-day investment horizon Neuberger Berman High is expected to generate 0.44 times more return on investment than Emerald Growth. However, Neuberger Berman High is 2.28 times less risky than Emerald Growth. It trades about 0.39 of its potential returns per unit of risk. Emerald Growth Fund is currently generating about -0.13 per unit of risk. If you would invest 749.00 in Neuberger Berman High on November 22, 2024 and sell it today you would earn a total of 32.00 from holding Neuberger Berman High or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman High vs. Emerald Growth Fund
Performance |
| Timeline |
| Neuberger Berman High |
| Emerald Growth |
Neuberger Berman and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Emerald Growth
The main advantage of trading using opposite Neuberger Berman and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Emerald Growth 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 Emerald Growth will offset losses from the drop in Emerald Growth's long position.| Neuberger Berman vs. Alliancebernstein National Municipal | Neuberger Berman vs. Pioneer Diversified High | Neuberger Berman vs. Highland Floating Rate | Neuberger Berman vs. Blackrock Innovation Growth |
| Emerald Growth vs. Intal High Relative | Emerald Growth vs. Litman Gregory Masters | Emerald Growth vs. Gmo High Yield | Emerald Growth vs. Metropolitan West High |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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