Correlation Between Neuberger Berman and BlackRock Energy

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

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

Diversification Opportunities for Neuberger Berman and BlackRock Energy

0.9

Correlation Coefficient

Neuberger Berman  BlackRock Energy

Almost no diversification

The 3 months correlation between Neuberger and BlackRock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Next and BlackRock Energy and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Energy 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 Next are associated (or correlated) with BlackRock Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Energy has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and BlackRock Energy go up and down completely randomly.

Pair Corralation between Neuberger Berman and BlackRock Energy

Given the investment horizon of 90 days Neuberger Berman Next is expected to generate 1.22 times more return on investment than BlackRock Energy. However, Neuberger Berman is 1.22 times more volatile than BlackRock Energy and. It trades about 0.27 of its potential returns per unit of risk. BlackRock Energy and is currently generating about 0.17 per unit of risk. If you would invest  1,223  in Neuberger Berman Next on May 6, 2025 and sell it today you would earn a total of  222.00  from holding Neuberger Berman Next or generate 18.15% 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 Next  vs.  BlackRock Energy and

Neuberger Berman Next

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Next are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Neuberger Berman reported solid returns over the last few months and may actually be approaching a breakup point.

BlackRock Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Energy and are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively sluggish technical and fundamental indicators, BlackRock Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Neuberger Berman and BlackRock Energy

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

The idea behind Neuberger Berman Next and BlackRock Energy and 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.