Correlation Between Invesco Municipal and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal 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 Invesco Municipal and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Opportunity and Neuberger Berman Mlp, you can compare the effects of market volatilities on Invesco Municipal 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 Invesco Municipal with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Neuberger Berman.
Diversification Opportunities for Invesco Municipal and Neuberger Berman
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invesco and Neuberger is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Opportunity and Neuberger Berman Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Mlp and Invesco Municipal 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 Invesco Municipal Opportunity 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 Mlp has no effect on the direction of Invesco Municipal i.e., Invesco Municipal and Neuberger Berman go up and down completely randomly.
Pair Corralation between Invesco Municipal and Neuberger Berman
Considering the 90-day investment horizon Invesco Municipal Opportunity is expected to generate 0.54 times more return on investment than Neuberger Berman. However, Invesco Municipal Opportunity is 1.85 times less risky than Neuberger Berman. It trades about -0.1 of its potential returns per unit of risk. Neuberger Berman Mlp is currently generating about -0.18 per unit of risk. If you would invest 989.00 in Invesco Municipal Opportunity on September 18, 2024 and sell it today you would lose (16.00) from holding Invesco Municipal Opportunity or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Municipal Opportunity vs. Neuberger Berman Mlp
Performance |
| Timeline |
| Invesco Municipal |
| Neuberger Berman Mlp |
Invesco Municipal and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Neuberger Berman
The main advantage of trading using opposite Invesco Municipal and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal 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.| Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Advantage MIT | Invesco Municipal vs. Invesco Municipal Trust | Invesco Municipal vs. Invesco California Value |
| Neuberger Berman vs. Blackrock Muniyield | Neuberger Berman vs. Blackrock Muni Intermediate | Neuberger Berman vs. Blackrock Muniyield Quality | Neuberger Berman vs. Blackrock Muniyield Quality |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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