Correlation Between Intermediate-term and Neuberger Berman

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

By analyzing existing cross correlation between Intermediate Term Bond Fund and Neuberger Berman Guardian, you can compare the effects of market volatilities on Intermediate-term 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 Intermediate-term with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate-term and Neuberger Berman.

Diversification Opportunities for Intermediate-term and Neuberger Berman

0.8

Correlation Coefficient

Intermediate-term  Neuberger Berman

Very poor diversification

The 3 months correlation between Intermediate-term and Neuberger is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Term Bond Fund and Neuberger Berman Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Guardian and Intermediate-term 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 Intermediate Term Bond Fund 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 Guardian has no effect on the direction of Intermediate-term i.e., Intermediate-term and Neuberger Berman go up and down completely randomly.

Pair Corralation between Intermediate-term and Neuberger Berman

Assuming the 90 days horizon Intermediate Term Bond Fund is expected to under-perform the Neuberger Berman. But the mutual fund apears to be less risky and, when comparing its historical volatility, Intermediate Term Bond Fund is 5.96 times less risky than Neuberger Berman. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Neuberger Berman Guardian is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  3,093  in Neuberger Berman Guardian on August 3, 2025 and sell it today you would earn a total of  301.00  from holding Neuberger Berman Guardian or generate 9.73% return on investment over 90 days.

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

Intermediate Term Bond Fund  vs.  Neuberger Berman Guardian

Intermediate Term Bond

Risk-Adjusted Performance

Fair

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

Neuberger Berman Guardian

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Guardian are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Neuberger Berman may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Intermediate-term and Neuberger Berman

The main advantage of trading using opposite Intermediate-term and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate-term 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 Intermediate Term Bond Fund and Neuberger Berman Guardian 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.