Correlation Between Commodity Return and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Commodity Return 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 Commodity Return and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodity Return Strategy and Credit Suisse Multialternative, you can compare the effects of market volatilities on Commodity Return 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 Commodity Return with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodity Return and Credit Suisse.
Diversification Opportunities for Commodity Return and Credit Suisse
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMMODITY and Credit is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Commodity Return Strategy 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 Commodity Return 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 Commodity Return Strategy 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 Commodity Return i.e., Commodity Return and Credit Suisse go up and down completely randomly.
Pair Corralation between Commodity Return and Credit Suisse
Assuming the 90 days horizon Commodity Return Strategy is expected to under-perform the Credit Suisse. In addition to that, Commodity Return is 2.41 times more volatile than Credit Suisse Multialternative. It trades about -0.03 of its total potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.16 per unit of volatility. If you would invest 887.00 in Credit Suisse Multialternative on August 25, 2024 and sell it today you would earn a total of 11.00 from holding Credit Suisse Multialternative or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commodity Return Strategy vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Commodity Return Strategy |
| Credit Suisse Multia |
Commodity Return and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodity Return and Credit Suisse
The main advantage of trading using opposite Commodity Return and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodity Return 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.| Commodity Return vs. Credit Suisse Floating | Commodity Return vs. Credit Suisse Modity | Commodity Return vs. Credit Suisse Modity | Commodity Return vs. Credit Suisse Managed |
| Credit Suisse vs. Pace Smallmedium Value | Credit Suisse vs. Ab Discovery Value | Credit Suisse vs. Amg River Road | Credit Suisse vs. Fidelity Small Cap |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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