Correlation Between Neiman Large and Multi Asset

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

Diversification Opportunities for Neiman Large and Multi Asset

0.99

Correlation Coefficient

Neiman Large  Multi Asset

No risk reduction

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

Pair Corralation between Neiman Large and Multi Asset

Assuming the 90 days horizon Neiman Large Cap is expected to generate 1.24 times more return on investment than Multi Asset. However, Neiman Large is 1.24 times more volatile than Multi Asset Growth Strategy. It trades about 0.31 of its potential returns per unit of risk. Multi Asset Growth Strategy is currently generating about 0.26 per unit of risk. If you would invest  3,223  in Neiman Large Cap on May 1, 2025 and sell it today you would earn a total of  176.00  from holding Neiman Large Cap or generate 5.46% 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.  Multi Asset Growth Strategy

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 22 (%) 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 August 2025.

Multi Asset Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Asset Growth Strategy are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multi Asset may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Neiman Large and Multi Asset

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

The idea behind Neiman Large Cap and Multi Asset Growth Strategy 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.