Correlation Between Credit Suisse and Credit Suisse
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
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Credit and Credit is 0.14. 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 0.15 times more return on investment than Credit Suisse. However, Credit Suisse Floating is 6.75 times less risky than Credit Suisse. It trades about 0.25 of its potential returns per unit of risk. Credit Suisse Modity is currently generating about -0.02 per unit of risk. If you would invest 631.00 in Credit Suisse Floating on September 9, 2024 and sell it today you would earn a total of 3.00 from holding Credit Suisse Floating or generate 0.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Credit Suisse Floating vs. Credit Suisse Modity
Performance |
Timeline |
Credit Suisse Floating |
Credit Suisse Modity |
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.Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity |
Credit Suisse vs. Transamerica Intermediate Muni | Credit Suisse vs. T Rowe Price | Credit Suisse vs. T Rowe Price | Credit Suisse vs. The Hartford Municipal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |