Correlation Between Invesco Advantage and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Invesco Advantage 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 Invesco Advantage and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Advantage MIT and Credit Suisse Asset, you can compare the effects of market volatilities on Invesco Advantage 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 Invesco Advantage with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Advantage and Credit Suisse.
Diversification Opportunities for Invesco Advantage and Credit Suisse
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invesco and Credit is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Advantage MIT 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 Invesco Advantage 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 Invesco Advantage MIT 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 Invesco Advantage i.e., Invesco Advantage and Credit Suisse go up and down completely randomly.
Pair Corralation between Invesco Advantage and Credit Suisse
Considering the 90-day investment horizon Invesco Advantage is expected to generate 4.41 times less return on investment than Credit Suisse. But when comparing it to its historical volatility, Invesco Advantage MIT is 1.56 times less risky than Credit Suisse. It trades about 0.02 of its potential returns per unit of risk. Credit Suisse Asset is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 223.00 in Credit Suisse Asset on October 12, 2024 and sell it today you would earn a total of 68.00 from holding Credit Suisse Asset or generate 30.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Invesco Advantage MIT vs. Credit Suisse Asset
Performance |
Timeline |
Invesco Advantage MIT |
Credit Suisse Asset |
Invesco Advantage and Credit Suisse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Invesco Advantage and Credit Suisse
The main advantage of trading using opposite Invesco Advantage and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Advantage 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.Invesco Advantage vs. Invesco Quality Municipal | Invesco Advantage vs. Invesco California Value | Invesco Advantage vs. DWS Municipal Income | Invesco Advantage vs. Invesco Trust For |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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