Correlation Between MFS High and Neuberger Berman

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

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

Diversification Opportunities for MFS High and Neuberger Berman

-0.42

Correlation Coefficient

MFS High  Neuberger Berman

Very good diversification

The 3 months correlation between MFS and Neuberger is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Yield and Neuberger Berman Next in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Next and MFS High 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 MFS High Yield 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 Next has no effect on the direction of MFS High i.e., MFS High and Neuberger Berman go up and down completely randomly.

Pair Corralation between MFS High and Neuberger Berman

Considering the 90-day investment horizon MFS High Yield is expected to under-perform the Neuberger Berman. But the stock apears to be less risky and, when comparing its historical volatility, MFS High Yield is 1.87 times less risky than Neuberger Berman. The stock trades about -0.01 of its potential returns per unit of risk. The Neuberger Berman Next is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,310  in Neuberger Berman Next on May 18, 2025 and sell it today you would earn a total of  175.00  from holding Neuberger Berman Next or generate 13.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MFS High Yield  vs.  Neuberger Berman Next

MFS High Yield

Risk-Adjusted Performance

Weakest

Over the last 90 days MFS High Yield has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, MFS High is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Neuberger Berman Next

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Next are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Neuberger Berman reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MFS High and Neuberger Berman

The main advantage of trading using opposite MFS High and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High 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 MFS High Yield and Neuberger Berman Next 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 Transaction History module to view history of all your transactions and understand their impact on performance.