Correlation Between Elfun Diversified and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified 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 Elfun Diversified and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and Neuberger Berman Emerging, you can compare the effects of market volatilities on Elfun Diversified 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 Elfun Diversified with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Neuberger Berman.
Diversification Opportunities for Elfun Diversified and Neuberger Berman
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elfun and Neuberger is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Neuberger Berman Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Emerging and Elfun Diversified 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 Elfun Diversified 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 Emerging has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Neuberger Berman go up and down completely randomly.
Pair Corralation between Elfun Diversified and Neuberger Berman
Assuming the 90 days horizon Elfun Diversified is expected to generate 1.63 times less return on investment than Neuberger Berman. But when comparing it to its historical volatility, Elfun Diversified Fund is 1.87 times less risky than Neuberger Berman. It trades about 0.28 of its potential returns per unit of risk. Neuberger Berman Emerging is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,175 in Neuberger Berman Emerging on May 26, 2025 and sell it today you would earn a total of 231.00 from holding Neuberger Berman Emerging or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Neuberger Berman Emerging
Performance |
| Timeline |
| Elfun Diversified |
| Neuberger Berman Emerging |
Elfun Diversified and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Neuberger Berman
The main advantage of trading using opposite Elfun Diversified and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified 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.| Elfun Diversified vs. Rmb Mendon Financial | Elfun Diversified vs. Goldman Sachs Financial | Elfun Diversified vs. Vanguard Financials Index | Elfun Diversified vs. Financials Ultrasector Profund |
| Neuberger Berman vs. Calvert Large Cap | Neuberger Berman vs. Qs Large Cap | Neuberger Berman vs. Large Cap Growth Profund | Neuberger Berman vs. Vest Large Cap |
Check out your portfolio center.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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