Correlation Between Volumetric Fund and Credit Suisse

Can any of the company-specific risk be diversified away by investing in both Volumetric 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 Volumetric 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 Volumetric Fund Volumetric and Credit Suisse Modity, you can compare the effects of market volatilities on Volumetric 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 Volumetric Fund with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volumetric Fund and Credit Suisse.

Diversification Opportunities for Volumetric Fund and Credit Suisse

-0.47

Correlation Coefficient

Volumetric Fund  Credit Suisse

Very good diversification

The 3 months correlation between Volumetric and Credit is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Volumetric Fund Volumetric 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 Volumetric 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 Volumetric Fund Volumetric 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 Volumetric Fund i.e., Volumetric Fund and Credit Suisse go up and down completely randomly.

Pair Corralation between Volumetric Fund and Credit Suisse

Assuming the 90 days horizon Volumetric Fund Volumetric is expected to under-perform the Credit Suisse. In addition to that, Volumetric Fund is 1.74 times more volatile than Credit Suisse Modity. It trades about -0.17 of its total potential returns per unit of risk. Credit Suisse Modity is currently generating about 0.22 per unit of volatility. If you would invest  2,133  in Credit Suisse Modity on December 23, 2024 and sell it today you would earn a total of  207.00  from holding Credit Suisse Modity or generate 9.7% return on investment over 90 days.

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

Volumetric Fund Volumetric  vs.  Credit Suisse Modity

Volumetric Fund Volu

Risk-Adjusted Performance

Very Weak

Over the last 90 days Volumetric Fund Volumetric has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Credit Suisse Modity

Risk-Adjusted Performance

Solid

Over the last 90 days Credit Suisse Modity has generated negative risk-adjusted returns adding no value to fund investors. 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 Volumetric Fund and Credit Suisse

The main advantage of trading using opposite Volumetric Fund and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volumetric 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 Volumetric Fund Volumetric 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.