Correlation Between Firsthand Alternative and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative 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 Firsthand Alternative and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Neuberger Berman Large, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Neuberger Berman.
Diversification Opportunities for Firsthand Alternative and Neuberger Berman
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Firsthand and Neuberger is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Neuberger Berman Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Large and Firsthand Alternative 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 Firsthand Alternative Energy 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 Large has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Neuberger Berman go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Neuberger Berman
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 3.9 times more return on investment than Neuberger Berman. However, Firsthand Alternative is 3.9 times more volatile than Neuberger Berman Large. It trades about 0.16 of its potential returns per unit of risk. Neuberger Berman Large is currently generating about 0.14 per unit of risk. If you would invest 1,064 in Firsthand Alternative Energy on August 13, 2025 and sell it today you would earn a total of 252.00 from holding Firsthand Alternative Energy or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Neuberger Berman Large
Performance |
| Timeline |
| Firsthand Alternative |
| Neuberger Berman Large |
Firsthand Alternative and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Neuberger Berman
The main advantage of trading using opposite Firsthand Alternative and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.The idea behind Firsthand Alternative Energy and Neuberger Berman Large 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.
| Neuberger Berman vs. Dreyfus Natural Resources | Neuberger Berman vs. Goehring Rozencwajg Resources | Neuberger Berman vs. Hennessy Bp Energy | Neuberger Berman vs. Firsthand Alternative Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |