Correlation Between Firsthand Alternative and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative 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 Firsthand Alternative and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Credit Suisse Managed, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Credit Suisse.
Diversification Opportunities for Firsthand Alternative and Credit Suisse
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Firsthand and Credit is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy 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 Firsthand Alternative 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 Firsthand Alternative Energy 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 Firsthand Alternative i.e., Firsthand Alternative and Credit Suisse go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Credit Suisse
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 2.25 times more return on investment than Credit Suisse. However, Firsthand Alternative is 2.25 times more volatile than Credit Suisse Managed. It trades about 0.16 of its potential returns per unit of risk. Credit Suisse Managed is currently generating about 0.0 per unit of risk. If you would invest 985.00 in Firsthand Alternative Energy on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Firsthand Alternative Energy or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Credit Suisse Managed
Performance |
| Timeline |
| Firsthand Alternative |
| Credit Suisse Managed |
Firsthand Alternative and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Credit Suisse
The main advantage of trading using opposite Firsthand Alternative and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Credit Suisse vs. Jhancock Real Estate | Credit Suisse vs. Simt Real Estate | Credit Suisse vs. Amg Managers Centersquare | Credit Suisse vs. Virtus Real Estate |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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