Correlation Between Amg River and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Amg River 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 Amg River and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Credit Suisse Multialternative, you can compare the effects of market volatilities on Amg River 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 Amg River with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Credit Suisse.
Diversification Opportunities for Amg River and Credit Suisse
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amg and Credit is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia and Amg River 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 Amg River Road 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 Multia has no effect on the direction of Amg River i.e., Amg River and Credit Suisse go up and down completely randomly.
Pair Corralation between Amg River and Credit Suisse
Assuming the 90 days horizon Amg River Road is expected to generate 2.95 times more return on investment than Credit Suisse. However, Amg River is 2.95 times more volatile than Credit Suisse Multialternative. It trades about 0.06 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.04 per unit of risk. If you would invest 915.00 in Amg River Road on August 29, 2024 and sell it today you would earn a total of 194.00 from holding Amg River Road or generate 21.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Amg River Road vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Amg River Road |
| Credit Suisse Multia |
Amg River and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Credit Suisse
The main advantage of trading using opposite Amg River and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River 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.| Amg River vs. Vanguard Small Cap Value | Amg River vs. Vanguard Small Cap Value | Amg River vs. Us Small Cap | Amg River vs. Us Targeted Value |
| Credit Suisse vs. Evaluator Conservative Rms | Credit Suisse vs. Pgim Conservative Retirement | Credit Suisse vs. Calvert Conservative Allocation | Credit Suisse vs. Conservative Balanced Allocation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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