Correlation Between Neuberger Berman and Calvert Smallcap

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

By analyzing existing cross correlation between Neuberger Berman Intermediate and Calvert Smallcap Fund6, you can compare the effects of market volatilities on Neuberger Berman and Calvert Smallcap 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 Calvert Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Calvert Smallcap.

Diversification Opportunities for Neuberger Berman and Calvert Smallcap

-0.05

Correlation Coefficient

Neuberger Berman  Calvert Smallcap

Good diversification

The 3 months correlation between Neuberger and Calvert is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Calvert Smallcap Fund6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Smallcap Fund6 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 Intermediate are associated (or correlated) with Calvert Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Smallcap Fund6 has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Calvert Smallcap go up and down completely randomly.

Pair Corralation between Neuberger Berman and Calvert Smallcap

Assuming the 90 days horizon Neuberger Berman Intermediate is expected to under-perform the Calvert Smallcap. But the mutual fund apears to be less risky and, when comparing its historical volatility, Neuberger Berman Intermediate is 3.2 times less risky than Calvert Smallcap. The mutual fund trades about -0.24 of its potential returns per unit of risk. The Calvert Smallcap Fund6 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,502  in Calvert Smallcap Fund6 on May 2, 2025 and sell it today you would earn a total of  134.00  from holding Calvert Smallcap Fund6 or generate 3.83% return on investment over 90 days.

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

Neuberger Berman Intermediate  vs.  Calvert Smallcap Fund6

Neuberger Berman Int

Risk-Adjusted Performance

Very Weak

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

Calvert Smallcap Fund6

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Smallcap Fund6 are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Smallcap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Neuberger Berman and Calvert Smallcap

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

The idea behind Neuberger Berman Intermediate and Calvert Smallcap Fund6 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.