Correlation Between Calvert Short and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Calvert Short 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 Calvert Short and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Short Duration and Credit Suisse Strategic, you can compare the effects of market volatilities on Calvert Short 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 Calvert Short with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Credit Suisse.
Diversification Opportunities for Calvert Short and Credit Suisse
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Credit is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Credit Suisse Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Strategic and Calvert Short 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 Calvert Short Duration 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 Strategic has no effect on the direction of Calvert Short i.e., Calvert Short and Credit Suisse go up and down completely randomly.
Pair Corralation between Calvert Short and Credit Suisse
Assuming the 90 days horizon Calvert Short is expected to generate 2.31 times less return on investment than Credit Suisse. In addition to that, Calvert Short is 1.23 times more volatile than Credit Suisse Strategic. It trades about 0.06 of its total potential returns per unit of risk. Credit Suisse Strategic is currently generating about 0.16 per unit of volatility. If you would invest 954.00 in Credit Suisse Strategic on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Credit Suisse Strategic or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert Short Duration vs. Credit Suisse Strategic
Performance |
| Timeline |
| Calvert Short Duration |
| Credit Suisse Strategic |
Calvert Short and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Short and Credit Suisse
The main advantage of trading using opposite Calvert Short and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short 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.| Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Income Fund | Calvert Short vs. Calvert Long Term Income |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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