Correlation Between Swan Hedged and Neuberger Berman

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

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

Diversification Opportunities for Swan Hedged and Neuberger Berman

0.89

Correlation Coefficient

Swan Hedged  Neuberger Berman

Very poor diversification

The 3 months correlation between Swan and Neuberger is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Swan Hedged Equity and Neuberger Berman ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman ETF and Swan Hedged 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 Swan Hedged Equity 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 ETF has no effect on the direction of Swan Hedged i.e., Swan Hedged and Neuberger Berman go up and down completely randomly.

Pair Corralation between Swan Hedged and Neuberger Berman

Given the investment horizon of 90 days Swan Hedged Equity is expected to generate 1.17 times more return on investment than Neuberger Berman. However, Swan Hedged is 1.17 times more volatile than Neuberger Berman ETF. It trades about 0.17 of its potential returns per unit of risk. Neuberger Berman ETF is currently generating about 0.19 per unit of risk. If you would invest  2,396  in Swan Hedged Equity on July 28, 2025 and sell it today you would earn a total of  125.00  from holding Swan Hedged Equity or generate 5.22% return on investment over 90 days.

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

Swan Hedged Equity  vs.  Neuberger Berman ETF

Swan Hedged Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swan Hedged Equity are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Swan Hedged is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Neuberger Berman ETF

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman ETF are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Swan Hedged and Neuberger Berman

The main advantage of trading using opposite Swan Hedged and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swan Hedged 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 Swan Hedged Equity and Neuberger Berman ETF 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.