Correlation Between Neuberger Berman and VictoryShares WestEnd

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

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

Diversification Opportunities for Neuberger Berman and VictoryShares WestEnd

0.99

Correlation Coefficient

Neuberger Berman  VictoryShares WestEnd

No risk reduction

The 3 months correlation between Neuberger and VictoryShares is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman ETF and VictoryShares WestEnd Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VictoryShares WestEnd and Neuberger Berman 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 Neuberger Berman ETF are associated (or correlated) with VictoryShares WestEnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VictoryShares WestEnd has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and VictoryShares WestEnd go up and down completely randomly.

Pair Corralation between Neuberger Berman and VictoryShares WestEnd

Given the investment horizon of 90 days Neuberger Berman is expected to generate 1.47 times less return on investment than VictoryShares WestEnd. But when comparing it to its historical volatility, Neuberger Berman ETF is 1.82 times less risky than VictoryShares WestEnd. It trades about 0.26 of its potential returns per unit of risk. VictoryShares WestEnd Sector is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  4,060  in VictoryShares WestEnd Sector on May 13, 2025 and sell it today you would earn a total of  344.00  from holding VictoryShares WestEnd Sector or generate 8.47% return on investment over 90 days.

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

Neuberger Berman ETF  vs.  VictoryShares WestEnd Sector

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 20 (%) 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.

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 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, VictoryShares WestEnd may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Neuberger Berman and VictoryShares WestEnd

The main advantage of trading using opposite Neuberger Berman and VictoryShares WestEnd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, VictoryShares WestEnd 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 VictoryShares WestEnd will offset losses from the drop in VictoryShares WestEnd's long position.

The idea behind Neuberger Berman ETF and VictoryShares WestEnd Sector 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.