Correlation Between Us Government and Neuberger Berman

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

By analyzing existing cross correlation between Us Government Securities and Neuberger Berman Emerging, you can compare the effects of market volatilities on Us Government and Neuberger Berman 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 Us Government with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Government and Neuberger Berman.

Diversification Opportunities for Us Government and Neuberger Berman

0.8

Correlation Coefficient

Us Government  Neuberger Berman

Very poor diversification

The 3 months correlation between RGVAX and Neuberger is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Us Government Securities and Neuberger Berman Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Emerging and Us Government 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 Us Government Securities are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Emerging has no effect on the direction of Us Government i.e., Us Government and Neuberger Berman go up and down completely randomly.

Pair Corralation between Us Government and Neuberger Berman

Assuming the 90 days horizon Us Government is expected to generate 1.29 times less return on investment than Neuberger Berman. In addition to that, Us Government is 1.21 times more volatile than Neuberger Berman Emerging. It trades about 0.14 of its total potential returns per unit of risk. Neuberger Berman Emerging is currently generating about 0.21 per unit of volatility. If you would invest  4,826  in Neuberger Berman Emerging on May 22, 2025 and sell it today you would earn a total of  162.00  from holding Neuberger Berman Emerging or generate 3.36% return on investment over 90 days.

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

Us Government Securities  vs.  Neuberger Berman Emerging

Us Government Securities

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Us Government Securities are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Us Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Neuberger Berman Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Emerging are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pair Trading with Us Government and Neuberger Berman

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

The idea behind Us Government Securities and Neuberger Berman Emerging 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.