Correlation Between Neuberger Berman and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Amg Managers 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 Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Large and Amg Managers Centersquare, you can compare the effects of market volatilities on Neuberger Berman and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Amg Managers.
Diversification Opportunities for Neuberger Berman and Amg Managers
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Neuberger and Amg is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Large and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare 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 Large are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Amg Managers go up and down completely randomly.
Pair Corralation between Neuberger Berman and Amg Managers
Assuming the 90 days horizon Neuberger Berman Large is expected to generate 0.61 times more return on investment than Amg Managers. However, Neuberger Berman Large is 1.64 times less risky than Amg Managers. It trades about -0.24 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about -0.27 per unit of risk. If you would invest 4,688 in Neuberger Berman Large on October 11, 2024 and sell it today you would lose (176.00) from holding Neuberger Berman Large or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Large vs. Amg Managers Centersquare
Performance |
| Timeline |
| Neuberger Berman Large |
| Amg Managers Centersquare |
Neuberger Berman and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Amg Managers
The main advantage of trading using opposite Neuberger Berman and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Neuberger Berman vs. Mirova Global Green | Neuberger Berman vs. Aqr Large Cap | Neuberger Berman vs. Transamerica Asset Allocation | Neuberger Berman vs. Federated Global Allocation |
| Amg Managers vs. Blackrock Large Cap | Amg Managers vs. Vest Large Cap | Amg Managers vs. Fidelity Large Cap | Amg Managers vs. Profunds Large Cap Growth |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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