Correlation Between Neuberger Berman and Needham Aggressive
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Needham Aggressive 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 Needham Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Strategic and Needham Aggressive Growth, you can compare the effects of market volatilities on Neuberger Berman and Needham Aggressive 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 Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Needham Aggressive.
Diversification Opportunities for Neuberger Berman and Needham Aggressive
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neuberger and Needham is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Strategic and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth 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 Strategic are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Needham Aggressive go up and down completely randomly.
Pair Corralation between Neuberger Berman and Needham Aggressive
Assuming the 90 days horizon Neuberger Berman Strategic is expected to generate 0.13 times more return on investment than Needham Aggressive. However, Neuberger Berman Strategic is 7.97 times less risky than Needham Aggressive. It trades about 0.21 of its potential returns per unit of risk. Needham Aggressive Growth is currently generating about -0.23 per unit of risk. If you would invest 991.00 in Neuberger Berman Strategic on December 8, 2024 and sell it today you would earn a total of 10.00 from holding Neuberger Berman Strategic or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Neuberger Berman Strategic vs. Needham Aggressive Growth
Performance |
| Timeline |
| Neuberger Berman Str |
| Needham Aggressive Growth |
Neuberger Berman and Needham Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Needham Aggressive
The main advantage of trading using opposite Neuberger Berman and Needham Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Needham Aggressive 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 Needham Aggressive will offset losses from the drop in Needham Aggressive's long position.| Neuberger Berman vs. Wells Fargo Advantage | ||
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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