Correlation Between Credit Suisse and Quantitative Longshort
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Quantitative Longshort 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 Credit Suisse and Quantitative Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Trust and Quantitative Longshort Equity, you can compare the effects of market volatilities on Credit Suisse and Quantitative Longshort 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 Credit Suisse with a short position of Quantitative Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Quantitative Longshort.
Diversification Opportunities for Credit Suisse and Quantitative Longshort
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Credit and Quantitative is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Trust and Quantitative Longshort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantitative Longshort and Credit Suisse 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 Credit Suisse Trust are associated (or correlated) with Quantitative Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantitative Longshort has no effect on the direction of Credit Suisse i.e., Credit Suisse and Quantitative Longshort go up and down completely randomly.
Pair Corralation between Credit Suisse and Quantitative Longshort
Assuming the 90 days horizon Credit Suisse Trust is expected to under-perform the Quantitative Longshort. In addition to that, Credit Suisse is 1.32 times more volatile than Quantitative Longshort Equity. It trades about -0.03 of its total potential returns per unit of risk. Quantitative Longshort Equity is currently generating about 0.27 per unit of volatility. If you would invest 1,427 in Quantitative Longshort Equity on September 4, 2024 and sell it today you would earn a total of 43.00 from holding Quantitative Longshort Equity or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Trust vs. Quantitative Longshort Equity
Performance |
| Timeline |
| Credit Suisse Trust |
| Quantitative Longshort |
Credit Suisse and Quantitative Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Quantitative Longshort
The main advantage of trading using opposite Credit Suisse and Quantitative Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Quantitative Longshort 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 Quantitative Longshort will offset losses from the drop in Quantitative Longshort's long position.| Credit Suisse vs. Western Asset Inflation | Credit Suisse vs. American Funds Inflation | Credit Suisse vs. Oklahoma College Savings | Credit Suisse vs. Inflation Protected Bond Fund |
| Quantitative Longshort vs. Pace Smallmedium Growth | Quantitative Longshort vs. Mid Cap Growth | Quantitative Longshort vs. Ftfa Franklin Templeton Growth | Quantitative Longshort vs. Nationwide Growth Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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