Correlation Between Neuberger Berman and Cohen

Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Cohen 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 Cohen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Neuberger Berman High and Cohen And Steers, you can compare the effects of market volatilities on Neuberger Berman and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Cohen.

Diversification Opportunities for Neuberger Berman and Cohen

0.48

Correlation Coefficient

Neuberger Berman  Cohen

Very weak diversification

The 3 months correlation between Neuberger and Cohen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers 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 High are associated (or correlated) with Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Cohen go up and down completely randomly.

Pair Corralation between Neuberger Berman and Cohen

Considering the 90-day investment horizon Neuberger Berman High is expected to generate 0.47 times more return on investment than Cohen. However, Neuberger Berman High is 2.15 times less risky than Cohen. It trades about -0.03 of its potential returns per unit of risk. Cohen And Steers is currently generating about -0.12 per unit of risk. If you would invest  798.00  in Neuberger Berman High on January 31, 2024 and sell it today you would lose (3.00) from holding Neuberger Berman High or give up 0.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Neuberger Berman High  vs.  Cohen And Steers

Neuberger Berman High

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman High are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively stable technical indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Cohen And Steers

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen And Steers are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly weak basic indicators, Cohen may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Neuberger Berman and Cohen

The main advantage of trading using opposite Neuberger Berman and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.

The idea behind Neuberger Berman High and Cohen And Steers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.