Correlation Between VictoryShares WestEnd and Neuberger Berman

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

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

Diversification Opportunities for VictoryShares WestEnd and Neuberger Berman

0.98

Correlation Coefficient

VictoryShares WestEnd  Neuberger Berman

Almost no diversification

The 3 months correlation between VictoryShares and Neuberger is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding VictoryShares WestEnd Sector 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 VictoryShares WestEnd 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 VictoryShares WestEnd Sector 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 VictoryShares WestEnd i.e., VictoryShares WestEnd and Neuberger Berman go up and down completely randomly.

Pair Corralation between VictoryShares WestEnd and Neuberger Berman

Given the investment horizon of 90 days VictoryShares WestEnd Sector is expected to generate 2.31 times more return on investment than Neuberger Berman. However, VictoryShares WestEnd is 2.31 times more volatile than Neuberger Berman ETF. It trades about 0.3 of its potential returns per unit of risk. Neuberger Berman ETF is currently generating about 0.31 per unit of risk. If you would invest  3,839  in VictoryShares WestEnd Sector on April 25, 2025 and sell it today you would earn a total of  546.00  from holding VictoryShares WestEnd Sector or generate 14.22% return on investment over 90 days.

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

VictoryShares WestEnd Sector  vs.  Neuberger Berman ETF

VictoryShares WestEnd

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VictoryShares WestEnd Sector are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, VictoryShares WestEnd disclosed solid returns over the last few months and may actually be approaching a breakup point.

Neuberger Berman ETF

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman ETF are ranked lower than 24 (%) 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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VictoryShares WestEnd and Neuberger Berman

The main advantage of trading using opposite VictoryShares WestEnd and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VictoryShares WestEnd 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 VictoryShares WestEnd Sector 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.