Correlation Between Wells Fargo and Neuberger Berman

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

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

Diversification Opportunities for Wells Fargo and Neuberger Berman

0.83

Correlation Coefficient

Wells Fargo  Neuberger Berman

Very poor diversification

The 3 months correlation between Wells and Neuberger is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo International 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 Wells Fargo 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 Wells Fargo International 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 Wells Fargo i.e., Wells Fargo and Neuberger Berman go up and down completely randomly.

Pair Corralation between Wells Fargo and Neuberger Berman

Assuming the 90 days horizon Wells Fargo is expected to generate 18.03 times less return on investment than Neuberger Berman. But when comparing it to its historical volatility, Wells Fargo International is 1.13 times less risky than Neuberger Berman. It trades about 0.01 of its potential returns per unit of risk. Neuberger Berman Guardian is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  2,793  in Neuberger Berman Guardian on May 5, 2025 and sell it today you would earn a total of  347.00  from holding Neuberger Berman Guardian or generate 12.42% return on investment over 90 days.

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

Wells Fargo International  vs.  Neuberger Berman Guardian

Wells Fargo International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wells Fargo International are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Wells Fargo 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 basic indicators, Neuberger Berman may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Wells Fargo and Neuberger Berman

The main advantage of trading using opposite Wells Fargo and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo 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 Wells Fargo International 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.