Correlation Between Neuberger Berman and Standpoint Multi-asset
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Standpoint Multi-asset 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-asset 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-asset 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-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Standpoint Multi-asset.
Diversification Opportunities for Neuberger Berman and Standpoint Multi-asset
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neuberger and Standpoint is -0.26. 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-asset. 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-asset go up and down completely randomly.
Pair Corralation between Neuberger Berman and Standpoint Multi-asset
Assuming the 90 days horizon Neuberger Berman Long is expected to generate 0.41 times more return on investment than Standpoint Multi-asset. However, Neuberger Berman Long is 2.46 times less risky than Standpoint Multi-asset. It trades about 0.14 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.0 per unit of risk. If you would invest 1,780 in Neuberger Berman Long on September 1, 2024 and sell it today you would earn a total of 97.00 from holding Neuberger Berman Long or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Neuberger Berman Long vs. Standpoint Multi Asset
Performance |
| Timeline |
| Neuberger Berman Long |
| Standpoint Multi Asset |
Neuberger Berman and Standpoint Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Standpoint Multi-asset
The main advantage of trading using opposite Neuberger Berman and Standpoint Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Standpoint Multi-asset 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-asset will offset losses from the drop in Standpoint Multi-asset's long position.| Neuberger Berman vs. Transamerica Funds | Neuberger Berman vs. Federated Ohio Municipal | Neuberger Berman vs. Pace Municipal Fixed | Neuberger Berman vs. Blrc Sgy Mnp |
| Standpoint Multi-asset vs. Rbc Short Duration | Standpoint Multi-asset vs. Siit Ultra Short | Standpoint Multi-asset vs. Jhancock Short Duration | Standpoint Multi-asset vs. Astor Longshort Fund |
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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |