Correlation Between Credit Suisse and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Credit Suisse 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 Credit Suisse and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Floating and Neuberger Berman Equity, you can compare the effects of market volatilities on Credit Suisse 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 Credit Suisse with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Neuberger Berman.
Diversification Opportunities for Credit Suisse and Neuberger Berman
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and Neuberger is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Neuberger Berman Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Equity and Credit Suisse 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 Credit Suisse Floating 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 Equity has no effect on the direction of Credit Suisse i.e., Credit Suisse and Neuberger Berman go up and down completely randomly.
Pair Corralation between Credit Suisse and Neuberger Berman
Assuming the 90 days horizon Credit Suisse Floating is not expected to generate positive returns. However, Credit Suisse Floating is 8.58 times less risky than Neuberger Berman. It waists most of its returns potential to compensate for thr risk taken. Neuberger Berman is generating about 0.23 per unit of risk. If you would invest 1,335 in Neuberger Berman Equity on November 4, 2024 and sell it today you would earn a total of 47.00 from holding Neuberger Berman Equity or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Neuberger Berman Equity
Performance |
| Timeline |
| Credit Suisse Floating |
| Neuberger Berman Equity |
Credit Suisse and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Neuberger Berman
The main advantage of trading using opposite Credit Suisse and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse 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.| Credit Suisse vs. Columbia Real Estate | Credit Suisse vs. Tiaa Cref Real Estate | Credit Suisse vs. Real Estate Ultrasector | Credit Suisse vs. Amg Managers Centersquare |
| Neuberger Berman vs. Vest Large Cap | Neuberger Berman vs. Guidemark Large Cap | Neuberger Berman vs. Qs Large Cap | Neuberger Berman vs. Fidelity Large Cap |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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