Correlation Between Neuberger Berman and Gmo Emerging

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

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

Diversification Opportunities for Neuberger Berman and Gmo Emerging

0.0

Correlation Coefficient

Neuberger Berman  Gmo Emerging

Pay attention - limited upside

The 3 months correlation between Neuberger and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Strategic and Gmo Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Markets 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 Strategic are associated (or correlated) with Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Markets has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Gmo Emerging go up and down completely randomly.

Pair Corralation between Neuberger Berman and Gmo Emerging

If you would invest  1,205  in Gmo Emerging Markets on May 3, 2025 and sell it today you would earn a total of  124.00  from holding Gmo Emerging Markets or generate 10.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Neuberger Berman Strategic  vs.  Gmo Emerging Markets

Neuberger Berman Str

Risk-Adjusted Performance

Good

Over the last 90 days Neuberger Berman Strategic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Neuberger Berman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gmo Emerging Markets

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gmo Emerging Markets are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gmo Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Neuberger Berman and Gmo Emerging

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

The idea behind Neuberger Berman Strategic and Gmo Emerging Markets 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.