Correlation Between Neiman Large and Credit Suisse

Can any of the company-specific risk be diversified away by investing in both Neiman Large and Credit Suisse 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 Neiman Large and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Neiman Large Cap and Credit Suisse Multialternative, you can compare the effects of market volatilities on Neiman Large and Credit Suisse 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 Neiman Large with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neiman Large and Credit Suisse.

Diversification Opportunities for Neiman Large and Credit Suisse

0.27

Correlation Coefficient

Neiman Large  Credit Suisse

Modest diversification

The 3 months correlation between Neiman and Credit is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Neiman Large Cap and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia and Neiman Large 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 Neiman Large Cap are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Neiman Large i.e., Neiman Large and Credit Suisse go up and down completely randomly.

Pair Corralation between Neiman Large and Credit Suisse

Assuming the 90 days horizon Neiman Large is expected to generate 4.28 times less return on investment than Credit Suisse. In addition to that, Neiman Large is 2.07 times more volatile than Credit Suisse Multialternative. It trades about 0.02 of its total potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.15 per unit of volatility. If you would invest  795.00  in Credit Suisse Multialternative on October 23, 2024 and sell it today you would earn a total of  24.00  from holding Credit Suisse Multialternative or generate 3.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Neiman Large Cap  vs.  Credit Suisse Multialternative

Neiman Large Cap

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Neiman Large Cap are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Neiman Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credit Suisse Multia

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Multialternative are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Neiman Large and Credit Suisse

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

The idea behind Neiman Large Cap and Credit Suisse Multialternative 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.