Correlation Between Fidelity Series and Neuberger Berman

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

By analyzing existing cross correlation between Fidelity Series International and Neuberger Berman Global, you can compare the effects of market volatilities on Fidelity Series and Neuberger Berman 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 Fidelity Series with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Neuberger Berman.

Diversification Opportunities for Fidelity Series and Neuberger Berman

0.07

Correlation Coefficient

Fidelity Series  Neuberger Berman

Significant diversification

The 3 months correlation between Fidelity and Neuberger is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series International and Neuberger Berman Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Global and Fidelity Series 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 Fidelity Series International are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Global has no effect on the direction of Fidelity Series i.e., Fidelity Series and Neuberger Berman go up and down completely randomly.

Pair Corralation between Fidelity Series and Neuberger Berman

If you would invest  1,028  in Neuberger Berman Global on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Neuberger Berman Global or generate 0.0% return on investment over 90 days.

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

Fidelity Series International  vs.  Neuberger Berman Global

Fidelity Series Inte

Risk-Adjusted Performance

0 of 100

Very Weak

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

Neuberger Berman Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman Global 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.

Pair Trading with Fidelity Series and Neuberger Berman

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

The idea behind Fidelity Series International and Neuberger Berman Global 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 Global Correlations module to find global opportunities by holding instruments from different markets.