Correlation Between Neuberger Berman and Nuveen Municipal
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Nuveen Municipal 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 Nuveen Municipal 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 Nuveen Municipal High, you can compare the effects of market volatilities on Neuberger Berman and Nuveen Municipal 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 Nuveen Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Nuveen Municipal.
Diversification Opportunities for Neuberger Berman and Nuveen Municipal
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Nuveen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Nuveen Municipal High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipal High 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 Nuveen Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipal High has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Nuveen Municipal go up and down completely randomly.
Pair Corralation between Neuberger Berman and Nuveen Municipal
Assuming the 90 days horizon Neuberger Berman is expected to generate 259.33 times less return on investment than Nuveen Municipal. But when comparing it to its historical volatility, Neuberger Berman Intermediate is 1.68 times less risky than Nuveen Municipal. It trades about 0.0 of its potential returns per unit of risk. Nuveen Municipal High is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,088 in Nuveen Municipal High on November 3, 2024 and sell it today you would earn a total of 34.00 from holding Nuveen Municipal High or generate 3.13% 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. Nuveen Municipal High
Performance |
| Timeline |
| Neuberger Berman Int |
| Nuveen Municipal High |
Neuberger Berman and Nuveen Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Nuveen Municipal
The main advantage of trading using opposite Neuberger Berman and Nuveen Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Nuveen Municipal 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 Nuveen Municipal will offset losses from the drop in Nuveen Municipal's long position.| Neuberger Berman vs. Jp Morgan Smartretirement | Neuberger Berman vs. Putnam Retirement Advantage | Neuberger Berman vs. Retirement Living Through | Neuberger Berman vs. Tiaa Cref Lifecycle Retirement |
| Nuveen Municipal vs. Nuveen Minnesota Municipal | Nuveen Municipal vs. Nuveen Symphony Floating | Nuveen Municipal vs. Nuveen Dow 30 | Nuveen Municipal vs. Nuveen Symphony Floating |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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