Correlation Between Credit Suisse and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Fidelity Advisor 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 Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Strategic and Fidelity Advisor Floating, you can compare the effects of market volatilities on Credit Suisse and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Fidelity Advisor.
Diversification Opportunities for Credit Suisse and Fidelity Advisor
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Credit and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Strategic and Fidelity Advisor Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Floating 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 Strategic are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Floating has no effect on the direction of Credit Suisse i.e., Credit Suisse and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Credit Suisse and Fidelity Advisor
Assuming the 90 days horizon Credit Suisse Strategic is expected to generate 1.2 times more return on investment than Fidelity Advisor. However, Credit Suisse is 1.2 times more volatile than Fidelity Advisor Floating. It trades about 0.2 of its potential returns per unit of risk. Fidelity Advisor Floating is currently generating about 0.22 per unit of risk. If you would invest 780.00 in Credit Suisse Strategic on September 26, 2024 and sell it today you would earn a total of 173.00 from holding Credit Suisse Strategic or generate 22.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Credit Suisse Strategic vs. Fidelity Advisor Floating
Performance |
Timeline |
Credit Suisse Strategic |
Fidelity Advisor Floating |
Credit Suisse and Fidelity Advisor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Credit Suisse and Fidelity Advisor
The main advantage of trading using opposite Credit Suisse and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
Fidelity Advisor vs. Fidelity Freedom 2015 | Fidelity Advisor vs. Fidelity Puritan Fund | Fidelity Advisor vs. Fidelity Puritan Fund | Fidelity Advisor vs. Fidelity Pennsylvania 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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