Correlation Between Neuberger Berman and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Eagle 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 Eagle 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 Eagle Small Cap, you can compare the effects of market volatilities on Neuberger Berman and Eagle 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 Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Eagle Small.
Diversification Opportunities for Neuberger Berman and Eagle Small
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neuberger and Eagle is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle 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 Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Eagle Small go up and down completely randomly.
Pair Corralation between Neuberger Berman and Eagle Small
Assuming the 90 days horizon Neuberger Berman is expected to generate 10.04 times less return on investment than Eagle Small. But when comparing it to its historical volatility, Neuberger Berman Intermediate is 2.83 times less risky than Eagle Small. It trades about 0.06 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,502 in Eagle Small Cap on August 24, 2024 and sell it today you would earn a total of 160.00 from holding Eagle Small Cap or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Neuberger Berman Intermediate vs. Eagle Small Cap
Performance |
| Timeline |
| Neuberger Berman Int |
| Eagle Small Cap |
Neuberger Berman and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Eagle Small
The main advantage of trading using opposite Neuberger Berman and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Eagle 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Neuberger Berman vs. Gmo Resources | Neuberger Berman vs. Tortoise Energy Independence | Neuberger Berman vs. Clearbridge Energy Mlp | Neuberger Berman vs. Franklin Natural Resources |
| Eagle Small vs. Teton Vertible Securities | Eagle Small vs. Harbor Vertible Securities | Eagle Small vs. Mainstay Vertible Fund | Eagle Small vs. Invesco Vertible Securities |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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