Correlation Between Neuberger Berman and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Sterling 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 Sterling Capital 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 Sterling Capital Total, you can compare the effects of market volatilities on Neuberger Berman and Sterling 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Sterling Capital.
Diversification Opportunities for Neuberger Berman and Sterling Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Neuberger and Sterling is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Strategic and Sterling Capital Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Total 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Total has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Sterling Capital go up and down completely randomly.
Pair Corralation between Neuberger Berman and Sterling Capital
Assuming the 90 days horizon Neuberger Berman Strategic is expected to generate 0.83 times more return on investment than Sterling Capital. However, Neuberger Berman Strategic is 1.21 times less risky than Sterling Capital. It trades about 0.08 of its potential returns per unit of risk. Sterling Capital Total is currently generating about 0.05 per unit of risk. If you would invest 903.00 in Neuberger Berman Strategic on August 31, 2024 and sell it today you would earn a total of 96.00 from holding Neuberger Berman Strategic or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Strategic vs. Sterling Capital Total
Performance |
| Timeline |
| Neuberger Berman Str |
| Sterling Capital Total |
Neuberger Berman and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Sterling Capital
The main advantage of trading using opposite Neuberger Berman and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Sterling 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Neuberger Berman vs. Dodge Cox Stock | Neuberger Berman vs. Dunham Large Cap | Neuberger Berman vs. Qs Large Cap | Neuberger Berman vs. American Mutual Fund |
| Sterling Capital vs. T Rowe Price | Sterling Capital vs. Nuveen Minnesota Municipal | Sterling Capital vs. Transamerica Funds | Sterling Capital vs. Blrc Sgy Mnp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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