Correlation Between Neuberger Berman and Rare Global

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

By analyzing existing cross correlation between Neuberger Berman Mid and Rare Global Infrastructure, you can compare the effects of market volatilities on Neuberger Berman and Rare Global 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 Rare Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Rare Global.

Diversification Opportunities for Neuberger Berman and Rare Global

0.31

Correlation Coefficient

Neuberger Berman  Rare Global

Weak diversification

The 3 months correlation between Neuberger and Rare is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Mid and Rare Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rare Global Infrastr 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 Mid are associated (or correlated) with Rare Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rare Global Infrastr has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Rare Global go up and down completely randomly.

Pair Corralation between Neuberger Berman and Rare Global

Assuming the 90 days horizon Neuberger Berman is expected to generate 3.09 times less return on investment than Rare Global. In addition to that, Neuberger Berman is 1.87 times more volatile than Rare Global Infrastructure. It trades about 0.02 of its total potential returns per unit of risk. Rare Global Infrastructure is currently generating about 0.13 per unit of volatility. If you would invest  1,440  in Rare Global Infrastructure on August 25, 2025 and sell it today you would earn a total of  62.00  from holding Rare Global Infrastructure or generate 4.31% return on investment over 90 days.

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

Neuberger Berman Mid  vs.  Rare Global Infrastructure

Neuberger Berman Mid

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Mid are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rare Global Infrastr

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Rare Global Infrastructure are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Rare Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Neuberger Berman and Rare Global

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

The idea behind Neuberger Berman Mid and Rare Global Infrastructure 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.