Correlation Between Neuberger Berman and Cemkx

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

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

Diversification Opportunities for Neuberger Berman and Cemkx

0.53

Correlation Coefficient

Neuberger Berman  Cemkx

Very weak diversification

The 3 months correlation between Neuberger and Cemkx is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Cemkx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemkx 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 High are associated (or correlated) with Cemkx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemkx has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Cemkx go up and down completely randomly.

Pair Corralation between Neuberger Berman and Cemkx

Considering the 90-day investment horizon Neuberger Berman High is expected to under-perform the Cemkx. But the fund apears to be less risky and, when comparing its historical volatility, Neuberger Berman High is 2.18 times less risky than Cemkx. The fund trades about -0.2 of its potential returns per unit of risk. The Cemkx is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  985.00  in Cemkx on May 1, 2025 and sell it today you would earn a total of  19.00  from holding Cemkx or generate 1.93% return on investment over 90 days.

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

Neuberger Berman High  vs.  Cemkx

Neuberger Berman High

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neuberger Berman High has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical indicators, Neuberger Berman is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Cemkx

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cemkx are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Cemkx showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neuberger Berman and Cemkx

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

The idea behind Neuberger Berman High and Cemkx 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.