Correlation Between Neuberger Berman and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Invesco Municipal 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 Invesco Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Mlp and Invesco Municipal Opportunity, you can compare the effects of market volatilities on Neuberger Berman and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Invesco Municipal.
Diversification Opportunities for Neuberger Berman and Invesco Municipal
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neuberger and Invesco is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Mlp and Invesco Municipal Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal 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 Mlp are associated (or correlated) with Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Invesco Municipal go up and down completely randomly.
Pair Corralation between Neuberger Berman and Invesco Municipal
Considering the 90-day investment horizon Neuberger Berman Mlp is expected to under-perform the Invesco Municipal. In addition to that, Neuberger Berman is 1.85 times more volatile than Invesco Municipal Opportunity. It trades about -0.18 of its total potential returns per unit of risk. Invesco Municipal Opportunity is currently generating about -0.1 per unit of volatility. If you would invest 989.00 in Invesco Municipal Opportunity on September 18, 2024 and sell it today you would lose (16.00) from holding Invesco Municipal Opportunity or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Mlp vs. Invesco Municipal Opportunity
Performance |
| Timeline |
| Neuberger Berman Mlp |
| Invesco Municipal |
Neuberger Berman and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Invesco Municipal
The main advantage of trading using opposite Neuberger Berman and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's long position.| Neuberger Berman vs. Blackrock Muniyield | Neuberger Berman vs. Blackrock Muni Intermediate | Neuberger Berman vs. Blackrock Muniyield Quality | Neuberger Berman vs. Blackrock Muniyield Quality |
| Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Advantage MIT | Invesco Municipal vs. Invesco Municipal Trust | Invesco Municipal vs. Invesco California Value |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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