Correlation Between Neuberger Berman and Meridian Trarian

Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Meridian Trarian 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 Meridian Trarian 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 Meridian Trarian Fund, you can compare the effects of market volatilities on Neuberger Berman and Meridian Trarian 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 Meridian Trarian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Meridian Trarian.

Diversification Opportunities for Neuberger Berman and Meridian Trarian

-0.74

Correlation Coefficient

Neuberger Berman  Meridian Trarian

Pay attention - limited upside

The 3 months correlation between Neuberger and Meridian is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Meridian Trarian Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Trarian 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 Meridian Trarian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Trarian has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Meridian Trarian go up and down completely randomly.

Pair Corralation between Neuberger Berman and Meridian Trarian

Assuming the 90 days horizon Neuberger Berman Intermediate is expected to under-perform the Meridian Trarian. But the mutual fund apears to be less risky and, when comparing its historical volatility, Neuberger Berman Intermediate is 3.15 times less risky than Meridian Trarian. The mutual fund trades about -0.22 of its potential returns per unit of risk. The Meridian Trarian Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  3,355  in Meridian Trarian Fund on April 29, 2025 and sell it today you would earn a total of  763.00  from holding Meridian Trarian Fund or generate 22.74% return on investment over 90 days.

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

Neuberger Berman Intermediate  vs.  Meridian Trarian Fund

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.

Meridian Trarian

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Meridian Trarian Fund are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Meridian Trarian showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neuberger Berman and Meridian Trarian

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

The idea behind Neuberger Berman Intermediate and Meridian Trarian Fund 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.