Correlation Between Credit Suisse and Credit Suisse

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Can any of the company-specific risk be diversified away by investing in both Credit Suisse 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 Credit Suisse and Credit Suisse 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 Credit Suisse Modity, you can compare the effects of market volatilities on Credit Suisse 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 Credit Suisse with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Credit Suisse.

Diversification Opportunities for Credit Suisse and Credit Suisse

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Credit and Credit is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Credit Suisse Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Modity 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 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 Modity has no effect on the direction of Credit Suisse i.e., Credit Suisse and Credit Suisse go up and down completely randomly.

Pair Corralation between Credit Suisse and Credit Suisse

Assuming the 90 days horizon Credit Suisse Floating is expected to generate 0.27 times more return on investment than Credit Suisse. However, Credit Suisse Floating is 3.77 times less risky than Credit Suisse. It trades about 0.2 of its potential returns per unit of risk. Credit Suisse Modity is currently generating about -0.01 per unit of risk. If you would invest  520.00  in Credit Suisse Floating on September 6, 2024 and sell it today you would earn a total of  113.00  from holding Credit Suisse Floating or generate 21.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.8%
ValuesDaily Returns

Credit Suisse Floating  vs.  Credit Suisse Modity

 Performance 
       Timeline  
Credit Suisse Floating 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Floating are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Credit Suisse Modity 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Modity are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credit Suisse and Credit Suisse Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Credit Suisse and Credit Suisse

The main advantage of trading using opposite Credit Suisse and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse 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.
The idea behind Credit Suisse Floating and Credit Suisse Modity 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.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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