Correlation Between Tfa Alphagen and Credit Suisse

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

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

Diversification Opportunities for Tfa Alphagen and Credit Suisse

0.24

Correlation Coefficient

Tfa Alphagen  Credit Suisse

Modest diversification

The 3 months correlation between Tfa and Credit is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth 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 Tfa Alphagen 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 Tfa Alphagen Growth 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 Tfa Alphagen i.e., Tfa Alphagen and Credit Suisse go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Credit Suisse

Assuming the 90 days horizon Tfa Alphagen Growth is expected to under-perform the Credit Suisse. In addition to that, Tfa Alphagen is 1.98 times more volatile than Credit Suisse Modity. It trades about -0.33 of its total potential returns per unit of risk. Credit Suisse Modity is currently generating about -0.04 per unit of volatility. If you would invest  2,429  in Credit Suisse Modity on December 11, 2024 and sell it today you would lose (12.00) from holding Credit Suisse Modity or give up 0.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tfa Alphagen Growth  vs.  Credit Suisse Modity

Tfa Alphagen Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tfa Alphagen Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Tfa Alphagen 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

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Modity are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Credit Suisse may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Tfa Alphagen and Credit Suisse

The main advantage of trading using opposite Tfa Alphagen and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen 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 Tfa Alphagen Growth 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.