Correlation Between Neuberger Berman and Franklin High
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Franklin High 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 Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Small and Franklin High Yield, you can compare the effects of market volatilities on Neuberger Berman and Franklin High 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 Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Franklin High.
Diversification Opportunities for Neuberger Berman and Franklin High
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Neuberger and Franklin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Small and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield 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 Small are associated (or correlated) with Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Franklin High go up and down completely randomly.
Pair Corralation between Neuberger Berman and Franklin High
Assuming the 90 days horizon Neuberger Berman Small is expected to under-perform the Franklin High. In addition to that, Neuberger Berman is 9.2 times more volatile than Franklin High Yield. It trades about -0.16 of its total potential returns per unit of risk. Franklin High Yield is currently generating about 0.43 per unit of volatility. If you would invest 919.00 in Franklin High Yield on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Franklin High Yield or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Small vs. Franklin High Yield
Performance |
| Timeline |
| Neuberger Berman Small |
| Franklin High Yield |
Neuberger Berman and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Franklin High
The main advantage of trading using opposite Neuberger Berman and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Franklin High 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 Franklin High will offset losses from the drop in Franklin High's long position.| Neuberger Berman vs. Franklin High Yield | Neuberger Berman vs. Versatile Bond Portfolio | Neuberger Berman vs. Dreyfusstandish Global Fixed | Neuberger Berman vs. T Rowe Price |
| Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield | Franklin High vs. SCOR PK | Franklin High vs. Morningstar Unconstrained Allocation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |