Correlation Between Neuberger Berman and Dynex Capital
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Dynex Capital 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 Dynex Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Real and Dynex Capital, you can compare the effects of market volatilities on Neuberger Berman and Dynex Capital 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 Dynex Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Dynex Capital.
Diversification Opportunities for Neuberger Berman and Dynex Capital
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Neuberger and Dynex is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Real and Dynex Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynex Capital 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 Real are associated (or correlated) with Dynex Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynex Capital has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Dynex Capital go up and down completely randomly.
Pair Corralation between Neuberger Berman and Dynex Capital
Assuming the 90 days horizon Neuberger Berman is expected to generate 1.26 times less return on investment than Dynex Capital. But when comparing it to its historical volatility, Neuberger Berman Real is 1.35 times less risky than Dynex Capital. It trades about 0.04 of its potential returns per unit of risk. Dynex Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 998.00 in Dynex Capital on August 26, 2024 and sell it today you would earn a total of 241.00 from holding Dynex Capital or generate 24.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Real vs. Dynex Capital
Performance |
| Timeline |
| Neuberger Berman Real |
| Dynex Capital |
Neuberger Berman and Dynex Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Dynex Capital
The main advantage of trading using opposite Neuberger Berman and Dynex Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Dynex Capital 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 Dynex Capital will offset losses from the drop in Dynex Capital's long position.| Neuberger Berman vs. Realty Income | Neuberger Berman vs. Dynex Capital | Neuberger Berman vs. First Industrial Realty | Neuberger Berman vs. Healthcare Realty Trust |
| Dynex Capital vs. Blackstone Mortgage Trust | Dynex Capital vs. Omega Healthcare Investors | Dynex Capital vs. Medical Properties Trust |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |