Correlation Between Auer Growth and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Credit Suisse Floating, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Credit Suisse.
Diversification Opportunities for Auer Growth and Credit Suisse
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Auer and Credit is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Auer Growth 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 Auer Growth Fund 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 Floating has no effect on the direction of Auer Growth i.e., Auer Growth and Credit Suisse go up and down completely randomly.
Pair Corralation between Auer Growth and Credit Suisse
Assuming the 90 days horizon Auer Growth Fund is expected to generate 5.82 times more return on investment than Credit Suisse. However, Auer Growth is 5.82 times more volatile than Credit Suisse Floating. It trades about 0.25 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about -0.04 per unit of risk. If you would invest 1,680 in Auer Growth Fund on September 5, 2024 and sell it today you would earn a total of 86.00 from holding Auer Growth Fund or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Credit Suisse Floating
Performance |
| Timeline |
| Auer Growth Fund |
| Credit Suisse Floating |
Auer Growth and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Credit Suisse
The main advantage of trading using opposite Auer Growth and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Aegis Value Fund |
| Credit Suisse vs. Auer Growth Fund | Credit Suisse vs. Artisan Thematic Fund | Credit Suisse vs. Eic Value Fund | Credit Suisse vs. Omni Small Cap Value |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |