Correlation Between WisdomTree Continuous and Neuberger Berman

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

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

Diversification Opportunities for WisdomTree Continuous and Neuberger Berman

0.84

Correlation Coefficient

WisdomTree Continuous  Neuberger Berman

Very poor diversification

The 3 months correlation between WisdomTree and Neuberger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Continuous Commodit and Neuberger Berman Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Com and WisdomTree Continuous 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 WisdomTree Continuous Commodity 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 Com has no effect on the direction of WisdomTree Continuous i.e., WisdomTree Continuous and Neuberger Berman go up and down completely randomly.

Pair Corralation between WisdomTree Continuous and Neuberger Berman

Considering the 90-day investment horizon WisdomTree Continuous Commodity is expected to generate 0.98 times more return on investment than Neuberger Berman. However, WisdomTree Continuous Commodity is 1.02 times less risky than Neuberger Berman. It trades about 0.05 of its potential returns per unit of risk. Neuberger Berman Commodity is currently generating about 0.03 per unit of risk. If you would invest  1,701  in WisdomTree Continuous Commodity on April 18, 2025 and sell it today you would earn a total of  322.00  from holding WisdomTree Continuous Commodity or generate 18.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	99.8%
Values	Daily Returns

WisdomTree Continuous Commodit  vs.  Neuberger Berman Commodity

WisdomTree Continuous

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Continuous Commodity are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, WisdomTree Continuous is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Neuberger Berman Com

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Commodity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with WisdomTree Continuous and Neuberger Berman

The main advantage of trading using opposite WisdomTree Continuous and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Continuous 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 WisdomTree Continuous Commodity and Neuberger Berman Commodity 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.