Correlation Between Neuberger Berman and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Blackrock Muni 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 Blackrock Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Next and Blackrock Muni Intermediate, you can compare the effects of market volatilities on Neuberger Berman and Blackrock Muni 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 Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Blackrock Muni.
Diversification Opportunities for Neuberger Berman and Blackrock Muni
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neuberger and Blackrock is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Next and Blackrock Muni Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muni Inter 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 Next are associated (or correlated) with Blackrock Muni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muni Inter has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Blackrock Muni go up and down completely randomly.
Pair Corralation between Neuberger Berman and Blackrock Muni
Given the investment horizon of 90 days Neuberger Berman Next is expected to generate 6.45 times more return on investment than Blackrock Muni. However, Neuberger Berman is 6.45 times more volatile than Blackrock Muni Intermediate. It trades about 0.28 of its potential returns per unit of risk. Blackrock Muni Intermediate is currently generating about 0.26 per unit of risk. If you would invest 1,206 in Neuberger Berman Next on July 2, 2024 and sell it today you would earn a total of 69.00 from holding Neuberger Berman Next or generate 5.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Neuberger Berman Next vs. Blackrock Muni Intermediate
Performance |
Timeline |
Neuberger Berman Next |
Blackrock Muni Inter |
Neuberger Berman and Blackrock Muni Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Neuberger Berman and Blackrock Muni
The main advantage of trading using opposite Neuberger Berman and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Blackrock Muni 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 Blackrock Muni will offset losses from the drop in Blackrock Muni's long position.Neuberger Berman vs. MicroAlgo | Neuberger Berman vs. Bayview Acquisition Corp | Neuberger Berman vs. Aeye Inc | Neuberger Berman vs. Knife River |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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