Correlation Between Platinum Asia and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Platinum Asia 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 Platinum Asia and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Asia Investments and Neuberger Berman IMF, you can compare the effects of market volatilities on Platinum Asia 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 Platinum Asia with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Neuberger Berman.
Diversification Opportunities for Platinum Asia and Neuberger Berman
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Platinum and Neuberger is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Neuberger Berman IMF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman IMF and Platinum Asia 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 Platinum Asia Investments 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 IMF has no effect on the direction of Platinum Asia i.e., Platinum Asia and Neuberger Berman go up and down completely randomly.
Pair Corralation between Platinum Asia and Neuberger Berman
Considering the 90-day investment horizon Platinum Asia Investments is expected to generate 0.8 times more return on investment than Neuberger Berman. However, Platinum Asia Investments is 1.25 times less risky than Neuberger Berman. It trades about 0.36 of its potential returns per unit of risk. Neuberger Berman IMF is currently generating about 0.11 per unit of risk. If you would invest 1,225 in Platinum Asia Investments on November 2, 2024 and sell it today you would earn a total of 42.00 from holding Platinum Asia Investments or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. Neuberger Berman IMF
Performance |
| Timeline |
| Platinum Asia Investments |
| Neuberger Berman IMF |
Platinum Asia and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Neuberger Berman
The main advantage of trading using opposite Platinum Asia and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia 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.| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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