Correlation Between Neuberger Berman and Scout Small
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Scout Small 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 Scout Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Floating and Scout Small Cap, you can compare the effects of market volatilities on Neuberger Berman and Scout Small 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 Scout Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Scout Small.
Diversification Opportunities for Neuberger Berman and Scout Small
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Scout is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Floating and Scout Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Small Cap 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 Floating are associated (or correlated) with Scout Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Small Cap has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Scout Small go up and down completely randomly.
Pair Corralation between Neuberger Berman and Scout Small
Assuming the 90 days horizon Neuberger Berman is expected to generate 7.12 times less return on investment than Scout Small. But when comparing it to its historical volatility, Neuberger Berman Floating is 7.96 times less risky than Scout Small. It trades about 0.23 of its potential returns per unit of risk. Scout Small Cap is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,657 in Scout Small Cap on May 29, 2025 and sell it today you would earn a total of 384.00 from holding Scout Small Cap or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Floating vs. Scout Small Cap
Performance |
| Timeline |
| Neuberger Berman Floating |
| Scout Small Cap |
Neuberger Berman and Scout Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Scout Small
The main advantage of trading using opposite Neuberger Berman and Scout Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Scout Small 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 Scout Small will offset losses from the drop in Scout Small's long position.| Neuberger Berman vs. The Hartford Growth | Neuberger Berman vs. Tfa Alphagen Growth | Neuberger Berman vs. Qs Defensive Growth | Neuberger Berman vs. L Abbett Growth |
| Scout Small vs. Multimanager Lifestyle Moderate | Scout Small vs. Sa Worldwide Moderate | Scout Small vs. Mfs Lifetime Retirement | Scout Small vs. Franklin Lifesmart Retirement |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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