Correlation Between Spire Global and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Spire Global 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 Spire Global and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Neuberger Berman Absolute, you can compare the effects of market volatilities on Spire Global 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 Spire Global with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Neuberger Berman.
Diversification Opportunities for Spire Global and Neuberger Berman
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spire and Neuberger is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Neuberger Berman Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Absolute and Spire Global 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 Spire Global 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 Absolute has no effect on the direction of Spire Global i.e., Spire Global and Neuberger Berman go up and down completely randomly.
Pair Corralation between Spire Global and Neuberger Berman
Given the investment horizon of 90 days Spire Global is expected to generate 22.32 times more return on investment than Neuberger Berman. However, Spire Global is 22.32 times more volatile than Neuberger Berman Absolute. It trades about 0.08 of its potential returns per unit of risk. Neuberger Berman Absolute is currently generating about 0.05 per unit of risk. If you would invest 1,114 in Spire Global on September 3, 2024 and sell it today you would earn a total of 520.00 from holding Spire Global or generate 46.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Neuberger Berman Absolute
Performance |
| Timeline |
| Spire Global |
| Neuberger Berman Absolute |
Spire Global and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Neuberger Berman
The main advantage of trading using opposite Spire Global and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global 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.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Neuberger Berman vs. Global Gold Fund | Neuberger Berman vs. First Eagle Gold | Neuberger Berman vs. Short Precious Metals | Neuberger Berman vs. Oppenheimer Gold Special |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |