Correlation Between Neuberger Berman and Polar Capital
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Polar Capital 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 Polar Capital 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 Polar Capital Emerging, you can compare the effects of market volatilities on Neuberger Berman and Polar Capital 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 Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Polar Capital.
Diversification Opportunities for Neuberger Berman and Polar Capital
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Polar is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Polar Capital Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Emerging 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 Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Emerging has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Polar Capital go up and down completely randomly.
Pair Corralation between Neuberger Berman and Polar Capital
Considering the 90-day investment horizon Neuberger Berman High is expected to under-perform the Polar Capital. In addition to that, Neuberger Berman is 1.1 times more volatile than Polar Capital Emerging. It trades about -0.2 of its total potential returns per unit of risk. Polar Capital Emerging is currently generating about -0.13 per unit of volatility. If you would invest 871.00 in Polar Capital Emerging on August 30, 2024 and sell it today you would lose (45.00) from holding Polar Capital Emerging or give up 5.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Neuberger Berman High vs. Polar Capital Emerging
Performance |
| Timeline |
| Neuberger Berman High |
| Polar Capital Emerging |
Neuberger Berman and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Polar Capital
The main advantage of trading using opposite Neuberger Berman and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital's long position.| Neuberger Berman vs. Invesco High Income | Neuberger Berman vs. Alliancebernstein National Municipal | Neuberger Berman vs. Pioneer Diversified High | Neuberger Berman vs. Highland Floating Rate |
| Polar Capital vs. Ms Global Fixed | Polar Capital vs. Rbc Ultra Short Fixed | Polar Capital vs. The Hartford Equity | Polar Capital vs. Ultra Short Fixed Income |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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