Correlation Between Ab Select and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Select 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 Select Equity and Credit Suisse Managed, you can compare the effects of market volatilities on Ab Select 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 Select with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Credit Suisse.
Diversification Opportunities for Ab Select and Credit Suisse
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AUUIX and Credit is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity 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 Select 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 Select Equity 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 Select i.e., Ab Select and Credit Suisse go up and down completely randomly.
Pair Corralation between Ab Select and Credit Suisse
Assuming the 90 days horizon Ab Select Equity is expected to under-perform the Credit Suisse. In addition to that, Ab Select is 2.41 times more volatile than Credit Suisse Managed. It trades about -0.09 of its total potential returns per unit of risk. Credit Suisse Managed is currently generating about -0.02 per unit of volatility. If you would invest 857.00 in Credit Suisse Managed on September 13, 2024 and sell it today you would lose (4.00) from holding Credit Suisse Managed or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Credit Suisse Managed
Performance |
| Timeline |
| Ab Select Equity |
| Credit Suisse Managed |
Ab Select and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Credit Suisse
The main advantage of trading using opposite Ab Select and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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 Select vs. Siit Emerging Markets | Ab Select vs. Shelton Emerging Markets | Ab Select vs. Black Oak Emerging | Ab Select vs. Eagle Mlp Strategy |
| Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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