Correlation Between Neuberger Berman and Timothy Plan

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

Diversification Opportunities for Neuberger Berman and Timothy Plan

-0.75

Correlation Coefficient

Neuberger Berman  Timothy Plan

Pay attention - limited upside

The 3 months correlation between Neuberger and Timothy is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Intermediate and Timothy Plan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Small 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 Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan Small has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Timothy Plan go up and down completely randomly.

Pair Corralation between Neuberger Berman and Timothy Plan

Assuming the 90 days horizon Neuberger Berman Intermediate is expected to under-perform the Timothy Plan. But the mutual fund apears to be less risky and, when comparing its historical volatility, Neuberger Berman Intermediate is 2.76 times less risky than Timothy Plan. The mutual fund trades about -0.37 of its potential returns per unit of risk. The Timothy Plan Small is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,076  in Timothy Plan Small on May 2, 2025 and sell it today you would earn a total of  7.00  from holding Timothy Plan Small or generate 0.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Neuberger Berman Intermediate  vs.  Timothy Plan Small

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.

Timothy Plan Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan Small are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Timothy Plan may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Neuberger Berman and Timothy Plan

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

The idea behind Neuberger Berman Intermediate and Timothy Plan Small 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.