Correlation Between Neuberger Berman and Doubleline Opportunistic

Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Doubleline Opportunistic 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 Doubleline Opportunistic 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 Doubleline Opportunistic Credit, you can compare the effects of market volatilities on Neuberger Berman and Doubleline Opportunistic 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 Doubleline Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Doubleline Opportunistic.

Diversification Opportunities for Neuberger Berman and Doubleline Opportunistic

-0.2

Correlation Coefficient

Neuberger Berman  Doubleline Opportunistic

Good diversification

The 3 months correlation between Neuberger and Doubleline is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Next and Doubleline Opportunistic Credi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Opportunistic 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 Doubleline Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Opportunistic has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Doubleline Opportunistic go up and down completely randomly.

Pair Corralation between Neuberger Berman and Doubleline Opportunistic

Given the investment horizon of 90 days Neuberger Berman Next is expected to generate 2.24 times more return on investment than Doubleline Opportunistic. However, Neuberger Berman is 2.24 times more volatile than Doubleline Opportunistic Credit. It trades about 0.26 of its potential returns per unit of risk. Doubleline Opportunistic Credit is currently generating about 0.02 per unit of risk. If you would invest  1,227  in Neuberger Berman Next on May 4, 2025 and sell it today you would earn a total of  218.00  from holding Neuberger Berman Next or generate 17.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Neuberger Berman Next  vs.  Doubleline Opportunistic Credi

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 20 (%) 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.

Doubleline Opportunistic

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Opportunistic Credit are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, Doubleline Opportunistic is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Neuberger Berman and Doubleline Opportunistic

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

The idea behind Neuberger Berman Next and Doubleline Opportunistic Credit 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.