Correlation Between Neuberger Berman and Elbit Med
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Elbit Med 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 Elbit Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Socially and Elbit Med Tech, you can compare the effects of market volatilities on Neuberger Berman and Elbit Med 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 Elbit Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Elbit Med.
Diversification Opportunities for Neuberger Berman and Elbit Med
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neuberger and Elbit is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Socially and Elbit Med Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Med Tech 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 Socially are associated (or correlated) with Elbit Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Med Tech has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Elbit Med go up and down completely randomly.
Pair Corralation between Neuberger Berman and Elbit Med
Assuming the 90 days horizon Neuberger Berman Socially is expected to generate 0.2 times more return on investment than Elbit Med. However, Neuberger Berman Socially is 4.97 times less risky than Elbit Med. It trades about 0.05 of its potential returns per unit of risk. Elbit Med Tech is currently generating about -0.04 per unit of risk. If you would invest 3,271 in Neuberger Berman Socially on January 21, 2024 and sell it today you would earn a total of 1,054 from holding Neuberger Berman Socially or generate 32.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.03% |
| Values | Daily Returns |
Neuberger Berman Socially vs. Elbit Med Tech
Performance |
| Timeline |
| Neuberger Berman Socially |
| Elbit Med Tech |
Neuberger Berman and Elbit Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Elbit Med
The main advantage of trading using opposite Neuberger Berman and Elbit Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Elbit Med 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 Elbit Med will offset losses from the drop in Elbit Med's long position.| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman High | Neuberger Berman vs. Neuberger Berman Real |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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