Correlation Between Payden High and Neuberger Berman

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Payden High 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 Payden High and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden High Income and Neuberger Berman Income, you can compare the effects of market volatilities on Payden High 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 Payden High with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden High and Neuberger Berman.

Diversification Opportunities for Payden High and Neuberger Berman

PaydenNeubergerDiversified AwayPaydenNeubergerDiversified Away100%
0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Payden and Neuberger is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Payden High Income and Neuberger Berman Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Income and Payden High 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 Payden High Income 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 Income has no effect on the direction of Payden High i.e., Payden High and Neuberger Berman go up and down completely randomly.

Pair Corralation between Payden High and Neuberger Berman

Assuming the 90 days horizon Payden High is expected to generate 1.47 times less return on investment than Neuberger Berman. But when comparing it to its historical volatility, Payden High Income is 1.66 times less risky than Neuberger Berman. It trades about 0.23 of its potential returns per unit of risk. Neuberger Berman Income is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  763.00  in Neuberger Berman Income on November 30, 2024 and sell it today you would earn a total of  7.00  from holding Neuberger Berman Income or generate 0.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Payden High Income  vs.  Neuberger Berman Income

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -0.50.00.51.01.52.0
JavaScript chart by amCharts 3.21.15PYRLX NHIEX
       Timeline  
Payden High Income 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Payden High Income are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Payden High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6.266.286.36.326.346.366.386.46.42
Neuberger Berman Income 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Income are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7.547.567.587.67.627.647.667.687.7

Payden High and Neuberger Berman Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.45-0.24-0.0865-0.03990.0024170.05080.10.310.52 2468101214
JavaScript chart by amCharts 3.21.15PYRLX NHIEX
       Returns  

Pair Trading with Payden High and Neuberger Berman

The main advantage of trading using opposite Payden High and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden High 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.
The idea behind Payden High Income and Neuberger Berman Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios