Correlation Between Dws Strategic and Credit Suisse

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

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

Diversification Opportunities for Dws Strategic and Credit Suisse

0.0

Correlation Coefficient

Dws Strategic  Credit Suisse

Pay attention - limited upside

The 3 months correlation between Dws and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dws Strategic Municipal and Credit Suisse Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Asset and Dws Strategic 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 Dws Strategic Municipal 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 Asset has no effect on the direction of Dws Strategic i.e., Dws Strategic and Credit Suisse go up and down completely randomly.

Pair Corralation between Dws Strategic and Credit Suisse

If you would invest  283.00  in Credit Suisse Asset on December 23, 2024 and sell it today you would earn a total of  8.00  from holding Credit Suisse Asset or generate 2.83% return on investment over 90 days.

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

Dws Strategic Municipal  vs.  Credit Suisse Asset

Dws Strategic Municipal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dws Strategic Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Dws Strategic is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Credit Suisse Asset

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Asset are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward indicators, Credit Suisse is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dws Strategic and Credit Suisse

The main advantage of trading using opposite Dws Strategic and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Strategic 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 Dws Strategic Municipal and Credit Suisse Asset 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.