Correlation Between Visa and Credit Suisse

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

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

Diversification Opportunities for Visa and Credit Suisse

0.0

Correlation Coefficient

Visa  Credit Suisse

Pay attention - limited upside

The 3 months correlation between Visa and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse and Visa 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 Visa Class A 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 Visa i.e., Visa and Credit Suisse go up and down completely randomly.

Pair Corralation between Visa and Credit Suisse

If you would invest  31,669  in Visa Class A on December 23, 2024 and sell it today you would earn a total of  1,897  from holding Visa Class A or generate 5.99% return on investment over 90 days.

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

Visa Class A  vs.  Credit Suisse

Visa Class A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Visa may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Credit Suisse

Risk-Adjusted Performance

Very Weak

Over the last 90 days Credit Suisse has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Credit Suisse is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Visa and Credit Suisse

The main advantage of trading using opposite Visa and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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 Visa Class A 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.