Correlation Between Fs Managed and Credit Suisse

Can any of the company-specific risk be diversified away by investing in both Fs Managed 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 Fs Managed and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fs Managed Futures and Credit Suisse Floating, you can compare the effects of market volatilities on Fs Managed 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 Fs Managed with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Credit Suisse.

Diversification Opportunities for Fs Managed and Credit Suisse

-0.29

Correlation Coefficient

Fs Managed  Credit Suisse

Very good diversification

The 3 months correlation between FMFFX and Credit is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Fs Managed 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 Fs Managed Futures 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 Floating has no effect on the direction of Fs Managed i.e., Fs Managed and Credit Suisse go up and down completely randomly.

Pair Corralation between Fs Managed and Credit Suisse

Assuming the 90 days horizon Fs Managed Futures is expected to generate 1.41 times more return on investment than Credit Suisse. However, Fs Managed is 1.41 times more volatile than Credit Suisse Floating. It trades about 0.24 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.14 per unit of risk. If you would invest  854.00  in Fs Managed Futures on September 5, 2024 and sell it today you would earn a total of  16.00  from holding Fs Managed Futures or generate 1.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.38%
Values	Daily Returns

Fs Managed Futures  vs.  Credit Suisse Floating

Fs Managed Futures

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Fs Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Fs Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credit Suisse Floating

Risk-Adjusted Performance

10 of 100

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 fundamental indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fs Managed and Credit Suisse

The main advantage of trading using opposite Fs Managed and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed 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 Fs Managed Futures and Credit Suisse Floating 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.