Correlation Between Old Westbury and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and Neuberger Berman Large, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Neuberger Berman.
Diversification Opportunities for Old Westbury and Neuberger Berman
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Old and Neuberger is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Neuberger Berman Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Large and Old Westbury 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 Old Westbury Large 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 Large has no effect on the direction of Old Westbury i.e., Old Westbury and Neuberger Berman go up and down completely randomly.
Pair Corralation between Old Westbury and Neuberger Berman
Assuming the 90 days horizon Old Westbury is expected to generate 1.92 times less return on investment than Neuberger Berman. In addition to that, Old Westbury is 1.09 times more volatile than Neuberger Berman Large. It trades about 0.1 of its total potential returns per unit of risk. Neuberger Berman Large is currently generating about 0.22 per unit of volatility. If you would invest 4,735 in Neuberger Berman Large on August 30, 2024 and sell it today you would earn a total of 143.00 from holding Neuberger Berman Large or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Neuberger Berman Large
Performance |
| Timeline |
| Old Westbury Large |
| Neuberger Berman Large |
Old Westbury and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Neuberger Berman
The main advantage of trading using opposite Old Westbury and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. American Funds New | Old Westbury vs. New Perspective Fund | Old Westbury vs. New Perspective Fund | Old Westbury vs. New Perspective Fund |
| Neuberger Berman vs. Hennessy Nerstone Mid | Neuberger Berman vs. Ultrasmall Cap Profund Ultrasmall Cap | Neuberger Berman vs. Ultramid Cap Profund Ultramid Cap | Neuberger Berman vs. Mid Cap Value Profund |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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