Correlation Between Neiman Large and Multimanager Lifestyle

Can any of the company-specific risk be diversified away by investing in both Neiman Large and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive, you can compare the effects of market volatilities on Neiman Large and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neiman Large and Multimanager Lifestyle.

Diversification Opportunities for Neiman Large and Multimanager Lifestyle

0.99

Correlation Coefficient

Neiman Large  Multimanager Lifestyle

No risk reduction

The 3 months correlation between Neiman and Multimanager is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Neiman Large Cap and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Neiman Large i.e., Neiman Large and Multimanager Lifestyle go up and down completely randomly.

Pair Corralation between Neiman Large and Multimanager Lifestyle

Assuming the 90 days horizon Neiman Large Cap is expected to generate 0.82 times more return on investment than Multimanager Lifestyle. However, Neiman Large Cap is 1.21 times less risky than Multimanager Lifestyle. It trades about 0.25 of its potential returns per unit of risk. Multimanager Lifestyle Aggressive is currently generating about 0.2 per unit of risk. If you would invest  3,207  in Neiman Large Cap on May 26, 2025 and sell it today you would earn a total of  252.00  from holding Neiman Large Cap or generate 7.86% return on investment over 90 days.

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

Neiman Large Cap  vs.  Multimanager Lifestyle Aggress

Neiman Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Neiman Large Cap are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Neiman Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Multimanager Lifestyle

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Multimanager Lifestyle Aggressive are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multimanager Lifestyle may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Neiman Large and Multimanager Lifestyle

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

The idea behind Neiman Large Cap and Multimanager Lifestyle Aggressive 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.