Correlation Between Neuberger Berman and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman 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 Neuberger Berman and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Equity and Credit Suisse Floating, you can compare the effects of market volatilities on Neuberger Berman 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 Neuberger Berman with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Credit Suisse.
Diversification Opportunities for Neuberger Berman and Credit Suisse
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neuberger and Credit is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Equity and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating 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 Equity 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 Floating has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Credit Suisse go up and down completely randomly.
Pair Corralation between Neuberger Berman and Credit Suisse
Assuming the 90 days horizon Neuberger Berman Equity is expected to generate 9.22 times more return on investment than Credit Suisse. However, Neuberger Berman is 9.22 times more volatile than Credit Suisse Floating. It trades about 0.28 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about -0.1 per unit of risk. If you would invest 1,328 in Neuberger Berman Equity on November 5, 2024 and sell it today you would earn a total of 54.00 from holding Neuberger Berman Equity or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Equity vs. Credit Suisse Floating
Performance |
| Timeline |
| Neuberger Berman Equity |
| Credit Suisse Floating |
Neuberger Berman and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Credit Suisse
The main advantage of trading using opposite Neuberger Berman and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman 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.| Neuberger Berman vs. Vest Large Cap | Neuberger Berman vs. Guidemark Large Cap | Neuberger Berman vs. Qs Large Cap | Neuberger Berman vs. Fidelity Large Cap |
| Credit Suisse vs. Transamerica Asset Allocation | Credit Suisse vs. Slow Capital Growth | Credit Suisse vs. Qs Global Equity | Credit Suisse vs. Barings Global Floating |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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