Correlation Between Federated Ohio and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Federated Ohio and Neuberger Berman 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 Federated Ohio and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Ohio Municipal and Neuberger Berman Long, you can compare the effects of market volatilities on Federated Ohio and Neuberger Berman 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 Federated Ohio with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Ohio and Neuberger Berman.
Diversification Opportunities for Federated Ohio and Neuberger Berman
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Federated and Neuberger is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Federated Ohio Municipal and Neuberger Berman Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Long and Federated Ohio 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 Federated Ohio Municipal are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Long has no effect on the direction of Federated Ohio i.e., Federated Ohio and Neuberger Berman go up and down completely randomly.
Pair Corralation between Federated Ohio and Neuberger Berman
Assuming the 90 days horizon Federated Ohio is expected to generate 1.99 times less return on investment than Neuberger Berman. But when comparing it to its historical volatility, Federated Ohio Municipal is 1.27 times less risky than Neuberger Berman. It trades about 0.08 of its potential returns per unit of risk. Neuberger Berman Long is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,649 in Neuberger Berman Long on September 4, 2024 and sell it today you would earn a total of 231.00 from holding Neuberger Berman Long or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Federated Ohio Municipal vs. Neuberger Berman Long
Performance |
| Timeline |
| Federated Ohio Municipal |
| Neuberger Berman Long |
Federated Ohio and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Ohio and Neuberger Berman
The main advantage of trading using opposite Federated Ohio and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Ohio position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Federated Ohio vs. Quantitative Longshort Equity | Federated Ohio vs. Limited Term Tax | Federated Ohio vs. Aqr Long Short Equity | Federated Ohio vs. Astor Longshort Fund |
| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman High |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |