Correlation Between Neuberger Berman and Ls Opportunity
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Ls Opportunity 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 Ls Opportunity 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 Ls Opportunity Fund, you can compare the effects of market volatilities on Neuberger Berman and Ls Opportunity 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 Ls Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Ls Opportunity.
Diversification Opportunities for Neuberger Berman and Ls Opportunity
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Neuberger and LSOFX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Long and Ls Opportunity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ls Opportunity 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 Ls Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ls Opportunity has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Ls Opportunity go up and down completely randomly.
Pair Corralation between Neuberger Berman and Ls Opportunity
Assuming the 90 days horizon Neuberger Berman Long is expected to generate 0.66 times more return on investment than Ls Opportunity. However, Neuberger Berman Long is 1.53 times less risky than Ls Opportunity. It trades about -0.11 of its potential returns per unit of risk. Ls Opportunity Fund is currently generating about -0.1 per unit of risk. If you would invest 1,931 in Neuberger Berman Long on November 29, 2024 and sell it today you would lose (10.00) from holding Neuberger Berman Long or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Long vs. Ls Opportunity Fund
Performance |
| Timeline |
| Neuberger Berman Long |
| Ls Opportunity |
Neuberger Berman and Ls Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Ls Opportunity
The main advantage of trading using opposite Neuberger Berman and Ls Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Ls Opportunity 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 Ls Opportunity will offset losses from the drop in Ls Opportunity's long position.| Neuberger Berman vs. Barings Emerging Markets | Neuberger Berman vs. Transamerica Emerging Markets | Neuberger Berman vs. Jhancock Diversified Macro | Neuberger Berman vs. Aqr Sustainable Long Short |
| Ls Opportunity vs. Rmb Mendon Financial | Ls Opportunity vs. Davis Financial Fund | Ls Opportunity vs. Financial Industries Fund | Ls Opportunity vs. Mesirow Financial Small |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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