Correlation Between Credit Suisse and One Rock
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and One Rock 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 One Rock 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 One Rock Fund, you can compare the effects of market volatilities on Credit Suisse and One Rock 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 One Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and One Rock.
Diversification Opportunities for Credit Suisse and One Rock
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Credit and One is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and One Rock Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Rock Fund 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 One Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Rock Fund has no effect on the direction of Credit Suisse i.e., Credit Suisse and One Rock go up and down completely randomly.
Pair Corralation between Credit Suisse and One Rock
Assuming the 90 days horizon Credit Suisse is expected to generate 5.23 times less return on investment than One Rock. But when comparing it to its historical volatility, Credit Suisse Floating is 11.57 times less risky than One Rock. It trades about 0.19 of its potential returns per unit of risk. One Rock Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,078 in One Rock Fund on September 28, 2024 and sell it today you would earn a total of 2,395 from holding One Rock Fund or generate 115.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Credit Suisse Floating vs. One Rock Fund
Performance |
Timeline |
Credit Suisse Floating |
One Rock Fund |
Credit Suisse and One Rock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Credit Suisse and One Rock
The main advantage of trading using opposite Credit Suisse and One Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, One Rock 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 One Rock will offset losses from the drop in One Rock's long position.Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Managed |
One Rock vs. Fidelity Capital Income | One Rock vs. Prudential Floating Rate | One Rock vs. Ashmore Emerging Markets | One Rock vs. Q3 All Weather Sector |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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