Correlation Between Neuberger Berman and Bts Enhanced

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

Diversification Opportunities for Neuberger Berman and Bts Enhanced

0.55

Correlation Coefficient

Neuberger Berman  Bts Enhanced

Very weak diversification

The 3 months correlation between Neuberger and Bts is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman High and Bts Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bts Enhanced Equity 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 Bts Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bts Enhanced Equity has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Bts Enhanced go up and down completely randomly.

Pair Corralation between Neuberger Berman and Bts Enhanced

Considering the 90-day investment horizon Neuberger Berman is expected to generate 1.48 times less return on investment than Bts Enhanced. In addition to that, Neuberger Berman is 1.07 times more volatile than Bts Enhanced Equity. It trades about 0.1 of its total potential returns per unit of risk. Bts Enhanced Equity is currently generating about 0.16 per unit of volatility. If you would invest  923.00  in Bts Enhanced Equity on April 21, 2025 and sell it today you would earn a total of  59.00  from holding Bts Enhanced Equity or generate 6.39% 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.  Bts Enhanced Equity

Neuberger Berman High

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman High are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. 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.

Bts Enhanced Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bts Enhanced Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Bts Enhanced may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Neuberger Berman and Bts Enhanced

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

The idea behind Neuberger Berman High and Bts Enhanced Equity 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.