Correlation Between Barclays ETN and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Barclays ETN 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 Barclays ETN and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and Credit Suisse, you can compare the effects of market volatilities on Barclays ETN 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 Barclays ETN with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and Credit Suisse.
Diversification Opportunities for Barclays ETN and Credit Suisse
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse and Barclays ETN 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 Barclays ETN Select 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 has no effect on the direction of Barclays ETN i.e., Barclays ETN and Credit Suisse go up and down completely randomly.
Pair Corralation between Barclays ETN and Credit Suisse
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 0.19 times more return on investment than Credit Suisse. However, Barclays ETN Select is 5.24 times less risky than Credit Suisse. It trades about 0.15 of its potential returns per unit of risk. Credit Suisse is currently generating about 0.01 per unit of risk. If you would invest 1,724 in Barclays ETN Select on November 3, 2024 and sell it today you would earn a total of 1,369 from holding Barclays ETN Select or generate 79.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 14.35% |
| Values | Daily Returns |
Barclays ETN Select vs. Credit Suisse
Performance |
| Timeline |
| Barclays ETN Select |
| Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays ETN and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and Credit Suisse
The main advantage of trading using opposite Barclays ETN and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN 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.| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. UBS AG London | Barclays ETN vs. First Trust North | Barclays ETN vs. Tortoise North American |
| Credit Suisse vs. UBS AG London | Credit Suisse vs. UBS AG London | Credit Suisse vs. Barclays ETN Select | Credit Suisse vs. Tortoise North American |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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