Correlation Between Equity Growth and Neuberger Berman

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

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

Diversification Opportunities for Equity Growth and Neuberger Berman

0.75

Correlation Coefficient

Equity Growth  Neuberger Berman

Poor diversification

The 3 months correlation between Equity and Neuberger is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Equity Growth Fund and Neuberger Berman Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Mlp and Equity Growth 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 Equity Growth Fund 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 Mlp has no effect on the direction of Equity Growth i.e., Equity Growth and Neuberger Berman go up and down completely randomly.

Pair Corralation between Equity Growth and Neuberger Berman

Assuming the 90 days horizon Equity Growth Fund is expected to generate 0.77 times more return on investment than Neuberger Berman. However, Equity Growth Fund is 1.3 times less risky than Neuberger Berman. It trades about 0.3 of its potential returns per unit of risk. Neuberger Berman Mlp is currently generating about 0.12 per unit of risk. If you would invest  3,102  in Equity Growth Fund on April 30, 2025 and sell it today you would earn a total of  481.00  from holding Equity Growth Fund or generate 15.51% return on investment over 90 days.

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

Equity Growth Fund  vs.  Neuberger Berman Mlp

Equity Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Equity Growth Fund are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Equity Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Neuberger Berman Mlp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Mlp are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite quite fragile primary indicators, Neuberger Berman may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Equity Growth and Neuberger Berman

The main advantage of trading using opposite Equity Growth and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Growth 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 Equity Growth Fund and Neuberger Berman Mlp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.