Correlation Between Neuberger Berman and Standpoint Multi
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Standpoint Multi 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 Standpoint Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Long and Standpoint Multi Asset, you can compare the effects of market volatilities on Neuberger Berman and Standpoint Multi 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 Standpoint Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Standpoint Multi.
Diversification Opportunities for Neuberger Berman and Standpoint Multi
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neuberger and Standpoint is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Long and Standpoint Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standpoint Multi Asset 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 Long are associated (or correlated) with Standpoint Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standpoint Multi Asset has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Standpoint Multi go up and down completely randomly.
Pair Corralation between Neuberger Berman and Standpoint Multi
Assuming the 90 days horizon Neuberger Berman is expected to generate 1.6 times less return on investment than Standpoint Multi. But when comparing it to its historical volatility, Neuberger Berman Long is 1.69 times less risky than Standpoint Multi. It trades about 0.06 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,268 in Standpoint Multi Asset on August 26, 2024 and sell it today you would earn a total of 239.00 from holding Standpoint Multi Asset or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Long vs. Standpoint Multi Asset
Performance |
| Timeline |
| Neuberger Berman Long |
| Standpoint Multi Asset |
Neuberger Berman and Standpoint Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Standpoint Multi
The main advantage of trading using opposite Neuberger Berman and Standpoint Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Standpoint Multi 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 Standpoint Multi will offset losses from the drop in Standpoint Multi's long position.| Neuberger Berman vs. Vanguard Small Cap Value | Neuberger Berman vs. Northern Small Cap | Neuberger Berman vs. Valic Company I | Neuberger Berman vs. Mid Cap Value Profund |
| Standpoint Multi vs. Standpoint Multi Asset | Standpoint Multi vs. Vanguard 500 Index | Standpoint Multi vs. Vanguard Materials Index | Standpoint Multi vs. Nasdaq 100 2x Strategy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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