Correlation Between Neuberger Berman and Aston/crosswind Small
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Aston/crosswind Small 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 Neuberger Berman and Aston/crosswind Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Intermediate and Astoncrosswind Small Cap, you can compare the effects of market volatilities on Neuberger Berman and Aston/crosswind Small 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 Neuberger Berman with a short position of Aston/crosswind Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Aston/crosswind Small.
Diversification Opportunities for Neuberger Berman and Aston/crosswind Small
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Aston/crosswind is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Astoncrosswind Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoncrosswind Small Cap and Neuberger Berman 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 Neuberger Berman Intermediate are associated (or correlated) with Aston/crosswind Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoncrosswind Small Cap has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Aston/crosswind Small go up and down completely randomly.
Pair Corralation between Neuberger Berman and Aston/crosswind Small
Assuming the 90 days horizon Neuberger Berman Intermediate is expected to generate 0.44 times more return on investment than Aston/crosswind Small. However, Neuberger Berman Intermediate is 2.29 times less risky than Aston/crosswind Small. It trades about 0.07 of its potential returns per unit of risk. Astoncrosswind Small Cap is currently generating about -0.05 per unit of risk. If you would invest 1,170 in Neuberger Berman Intermediate on November 18, 2024 and sell it today you would earn a total of 6.00 from holding Neuberger Berman Intermediate or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Intermediate vs. Astoncrosswind Small Cap
Performance |
| Timeline |
| Neuberger Berman Int |
| Astoncrosswind Small Cap |
Neuberger Berman and Aston/crosswind Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Aston/crosswind Small
The main advantage of trading using opposite Neuberger Berman and Aston/crosswind Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Aston/crosswind Small 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 Aston/crosswind Small will offset losses from the drop in Aston/crosswind Small's long position.| Neuberger Berman vs. Old Westbury California | Neuberger Berman vs. Franklin Adjustable Government | Neuberger Berman vs. Baird Quality Intermediate | Neuberger Berman vs. Us Government Securities |
| Aston/crosswind Small vs. Baron Real Estate | Aston/crosswind Small vs. Eventide Gilead Fund | Aston/crosswind Small vs. Buffalo Emerging Opportunities | Aston/crosswind Small vs. Large Cap Growth |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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