Correlation Between Ab Bond and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Ab Bond 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 Ab Bond and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Credit Suisse Managed, you can compare the effects of market volatilities on Ab Bond 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 Ab Bond with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Credit Suisse.
Diversification Opportunities for Ab Bond and Credit Suisse
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABNOX and Credit is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Credit Suisse Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Managed and Ab Bond 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 Ab Bond Inflation 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 Managed has no effect on the direction of Ab Bond i.e., Ab Bond and Credit Suisse go up and down completely randomly.
Pair Corralation between Ab Bond and Credit Suisse
Assuming the 90 days horizon Ab Bond is expected to generate 1.49 times less return on investment than Credit Suisse. But when comparing it to its historical volatility, Ab Bond Inflation is 3.85 times less risky than Credit Suisse. It trades about 0.29 of its potential returns per unit of risk. Credit Suisse Managed is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 856.00 in Credit Suisse Managed on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Credit Suisse Managed or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ab Bond Inflation vs. Credit Suisse Managed
Performance |
| Timeline |
| Ab Bond Inflation |
| Credit Suisse Managed |
Ab Bond and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Credit Suisse
The main advantage of trading using opposite Ab Bond and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond 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.| Ab Bond vs. Growth Strategy Fund | Ab Bond vs. Investec Emerging Markets | Ab Bond vs. Nasdaq 100 2x Strategy | Ab Bond vs. Balanced Strategy Fund |
| Credit Suisse vs. Fkhemx | Credit Suisse vs. Wabmsx | Credit Suisse vs. Fbjygx | Credit Suisse vs. Small Pany Growth |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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