Correlation Between Neuberger Berman and Highland Long/short
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Highland Long/short 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 Highland Long/short 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 Highland Longshort Healthcare, you can compare the effects of market volatilities on Neuberger Berman and Highland Long/short 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 Highland Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Highland Long/short.
Diversification Opportunities for Neuberger Berman and Highland Long/short
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Neuberger and Highland is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Long/short 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 Highland Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Long/short has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Highland Long/short go up and down completely randomly.
Pair Corralation between Neuberger Berman and Highland Long/short
Assuming the 90 days horizon Neuberger Berman Intermediate is expected to generate 2.26 times more return on investment than Highland Long/short. However, Neuberger Berman is 2.26 times more volatile than Highland Longshort Healthcare. It trades about 0.06 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.11 per unit of risk. If you would invest 1,198 in Neuberger Berman Intermediate on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Neuberger Berman Intermediate or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Intermediate vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Neuberger Berman Int |
| Highland Long/short |
Neuberger Berman and Highland Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Highland Long/short
The main advantage of trading using opposite Neuberger Berman and Highland Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Highland Long/short 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 Highland Long/short will offset losses from the drop in Highland Long/short's long position.| Neuberger Berman vs. Rbb Fund | Neuberger Berman vs. Qs Large Cap | Neuberger Berman vs. Ab Global Risk | Neuberger Berman vs. Ips Strategic Capital |
| Highland Long/short vs. Highland Merger Arbitrage | Highland Long/short vs. Highland Small Cap Equity | Highland Long/short vs. Highland Small Cap Equity | Highland Long/short vs. Highland Small Cap Equity |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |