Correlation Between Neiman Large and Select Equity
Can any of the company-specific risk be diversified away by investing in both Neiman Large and Select Equity 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 Select Equity 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 Select Equity Fund, you can compare the effects of market volatilities on Neiman Large and Select Equity 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 Select Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neiman Large and Select Equity.
Diversification Opportunities for Neiman Large and Select Equity
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Neiman and Select is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Neiman Large Cap and Select Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Equity 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 Select Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Equity has no effect on the direction of Neiman Large i.e., Neiman Large and Select Equity go up and down completely randomly.
Pair Corralation between Neiman Large and Select Equity
Assuming the 90 days horizon Neiman Large Cap is expected to generate 0.88 times more return on investment than Select Equity. However, Neiman Large Cap is 1.14 times less risky than Select Equity. It trades about 0.18 of its potential returns per unit of risk. Select Equity Fund is currently generating about 0.13 per unit of risk. If you would invest 3,387 in Neiman Large Cap on July 24, 2025 and sell it today you would earn a total of 226.00 from holding Neiman Large Cap or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neiman Large Cap vs. Select Equity Fund
Performance |
| Timeline |
| Neiman Large Cap |
| Select Equity |
Neiman Large and Select Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neiman Large and Select Equity
The main advantage of trading using opposite Neiman Large and Select Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neiman Large position performs unexpectedly, Select Equity 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 Select Equity will offset losses from the drop in Select Equity's long position.| Neiman Large vs. Hsbc Treasury Money | Neiman Large vs. Dws Government Money | Neiman Large vs. Edward Jones Money | Neiman Large vs. The Gabelli Money |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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