Correlation Between Eagle Point and Neuberger Berman

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

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

Diversification Opportunities for Eagle Point and Neuberger Berman

0.67

Correlation Coefficient

Eagle Point  Neuberger Berman

Poor diversification

The 3 months correlation between Eagle and Neuberger is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit 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 Eagle Point 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 Eagle Point Credit 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 Eagle Point i.e., Eagle Point and Neuberger Berman go up and down completely randomly.

Pair Corralation between Eagle Point and Neuberger Berman

Given the investment horizon of 90 days Eagle Point Credit is expected to generate 0.36 times more return on investment than Neuberger Berman. However, Eagle Point Credit is 2.75 times less risky than Neuberger Berman. It trades about 0.14 of its potential returns per unit of risk. Neuberger Berman Mlp is currently generating about 0.04 per unit of risk. If you would invest  2,290  in Eagle Point Credit on May 17, 2025 and sell it today you would earn a total of  62.00  from holding Eagle Point Credit or generate 2.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Eagle Point Credit  vs.  Neuberger Berman Mlp

Eagle Point Credit

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Point Credit are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, Eagle Point is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Neuberger Berman Mlp

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Mlp are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent primary indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Eagle Point and Neuberger Berman

The main advantage of trading using opposite Eagle Point and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point 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 Eagle Point Credit 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.