Correlation Between Mainstay Convertible and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible 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 Mainstay Convertible and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Vertible Fund and Neuberger Berman Floating, you can compare the effects of market volatilities on Mainstay Convertible 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 Mainstay Convertible with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Neuberger Berman.
Diversification Opportunities for Mainstay Convertible and Neuberger Berman
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Neuberger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Neuberger Berman Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Floating and Mainstay Convertible 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 Mainstay Vertible 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 Floating has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Neuberger Berman go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Neuberger Berman
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 3.88 times more return on investment than Neuberger Berman. However, Mainstay Convertible is 3.88 times more volatile than Neuberger Berman Floating. It trades about 0.06 of its potential returns per unit of risk. Neuberger Berman Floating is currently generating about 0.15 per unit of risk. If you would invest 1,733 in Mainstay Vertible Fund on April 4, 2025 and sell it today you would earn a total of 169.00 from holding Mainstay Vertible Fund or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Neuberger Berman Floating
Performance |
| Timeline |
| Mainstay Convertible |
| Neuberger Berman Floating |
Mainstay Convertible and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Neuberger Berman
The main advantage of trading using opposite Mainstay Convertible and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible 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.| Mainstay Convertible vs. Omni Small Cap Value | Mainstay Convertible vs. Small Pany Growth | Mainstay Convertible vs. William Blair Emerging | Mainstay Convertible vs. Segall Bryant Hamill |
| Neuberger Berman vs. Morningstar Defensive Bond | Neuberger Berman vs. Siit Emerging Markets | Neuberger Berman vs. Shelton Emerging Markets | Neuberger Berman vs. Franklin Government Money |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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