Correlation Between Neuberger Berman and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Old Westbury 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 Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Large and Old Westbury Small, you can compare the effects of market volatilities on Neuberger Berman and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Old Westbury.
Diversification Opportunities for Neuberger Berman and Old Westbury
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Old is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Large and Old Westbury Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury 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 Large are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Small has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Old Westbury go up and down completely randomly.
Pair Corralation between Neuberger Berman and Old Westbury
Assuming the 90 days horizon Neuberger Berman Large is expected to generate 0.81 times more return on investment than Old Westbury. However, Neuberger Berman Large is 1.23 times less risky than Old Westbury. It trades about 0.19 of its potential returns per unit of risk. Old Westbury Small is currently generating about 0.12 per unit of risk. If you would invest 4,669 in Neuberger Berman Large on June 7, 2025 and sell it today you would earn a total of 296.00 from holding Neuberger Berman Large or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Neuberger Berman Large vs. Old Westbury Small
Performance |
| Timeline |
| Neuberger Berman Large |
| Old Westbury Small |
Neuberger Berman and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Old Westbury
The main advantage of trading using opposite Neuberger Berman and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Neuberger Berman vs. Pgim Jennison Technology | Neuberger Berman vs. Columbia Global Technology | Neuberger Berman vs. Fidelity Advisor Technology | Neuberger Berman vs. Franklin Biotechnology Discovery |
| Old Westbury vs. Short Duration Inflation | Old Westbury vs. Ab Bond Inflation | Old Westbury vs. Blackrock Inflation Protected | Old Westbury vs. Ab Municipal Bond |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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