Correlation Between Issachar Fund and Credit Suisse

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Issachar Fund 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 Issachar Fund and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Credit Suisse Modity, you can compare the effects of market volatilities on Issachar Fund 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 Issachar Fund with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Credit Suisse.

Diversification Opportunities for Issachar Fund and Credit Suisse

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Issachar and Credit is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class 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 Issachar Fund 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 Issachar Fund Class 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 Issachar Fund i.e., Issachar Fund and Credit Suisse go up and down completely randomly.

Pair Corralation between Issachar Fund and Credit Suisse

Assuming the 90 days horizon Issachar Fund is expected to generate 2.57 times less return on investment than Credit Suisse. In addition to that, Issachar Fund is 1.74 times more volatile than Credit Suisse Modity. It trades about 0.11 of its total potential returns per unit of risk. Credit Suisse Modity is currently generating about 0.47 per unit of volatility. If you would invest  2,133  in Credit Suisse Modity on October 23, 2024 and sell it today you would earn a total of  154.00  from holding Credit Suisse Modity or generate 7.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Issachar Fund Class  vs.  Credit Suisse Modity

 Performance 
       Timeline  
Issachar Fund Class 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Issachar Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Credit Suisse Modity 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Modity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Issachar Fund and Credit Suisse Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Issachar Fund and Credit Suisse

The main advantage of trading using opposite Issachar Fund and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund 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 Issachar Fund Class and Credit Suisse Modity 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets