Correlation Between Aqr Long and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Aqr Long 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 Aqr Long and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Long Short Equity and Neuberger Berman Floating, you can compare the effects of market volatilities on Aqr Long 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 Aqr Long with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Neuberger Berman.
Diversification Opportunities for Aqr Long and Neuberger Berman
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Neuberger is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Neuberger Berman Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Floating and Aqr Long 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 Aqr Long Short Equity 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 Floating has no effect on the direction of Aqr Long i.e., Aqr Long and Neuberger Berman go up and down completely randomly.
Pair Corralation between Aqr Long and Neuberger Berman
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 3.56 times more return on investment than Neuberger Berman. However, Aqr Long is 3.56 times more volatile than Neuberger Berman Floating. It trades about 0.18 of its potential returns per unit of risk. Neuberger Berman Floating is currently generating about 0.28 per unit of risk. If you would invest 1,629 in Aqr Long Short Equity on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Aqr Long Short Equity or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Neuberger Berman Floating
Performance |
| Timeline |
| Aqr Long Short |
| Neuberger Berman Floating |
Aqr Long and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Neuberger Berman
The main advantage of trading using opposite Aqr Long and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long 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.| Aqr Long vs. Needham Aggressive Growth | Aqr Long vs. Alliancebernstein Global High | Aqr Long vs. Artisan High Income | Aqr Long vs. Pace High Yield |
| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large |
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 CEOs Directory module to screen CEOs from public companies around the world.
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