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 High and Credit Suisse, 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

0.0

Correlation Coefficient

Credit Suisse  Credit Suisse

Pay attention - limited upside

The 3 months correlation between Credit and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse High and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse 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 High 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 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

If you would invest  212.00  in Credit Suisse High on September 14, 2024 and sell it today you would earn a total of  11.00  from holding Credit Suisse High or generate 5.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Credit Suisse High  vs.  Credit Suisse

Credit Suisse High

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse High are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical 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

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Credit Suisse has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Credit Suisse is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

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 High and Credit Suisse 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.