Correlation Between Neuberger Berman and Invesco Greater

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

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

Diversification Opportunities for Neuberger Berman and Invesco Greater

0.0

Correlation Coefficient

Neuberger Berman  Invesco Greater

Pay attention - limited upside

The 3 months correlation between Neuberger and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Greater and Invesco Greater China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Greater China 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 Greater are associated (or correlated) with Invesco Greater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Greater China has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Invesco Greater go up and down completely randomly.

Pair Corralation between Neuberger Berman and Invesco Greater

If you would invest  1,696  in Invesco Greater China on February 5, 2024 and sell it today you would earn a total of  129.00  from holding Invesco Greater China or generate 7.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Neuberger Berman Greater  vs.  Invesco Greater China

Neuberger Berman Greater

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman Greater has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Invesco Greater China

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Greater China are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Invesco Greater showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neuberger Berman and Invesco Greater

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

The idea behind Neuberger Berman Greater and Invesco Greater China 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.