Correlation Between Credit Suisse and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Fidelity Advisor 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 Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Floating and Fidelity Advisor Energy, you can compare the effects of market volatilities on Credit Suisse and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Fidelity Advisor.
Diversification Opportunities for Credit Suisse and Fidelity Advisor
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Fidelity is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Fidelity Advisor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Energy 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 Floating are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Energy has no effect on the direction of Credit Suisse i.e., Credit Suisse and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Credit Suisse and Fidelity Advisor
Assuming the 90 days horizon Credit Suisse is expected to generate 1.34 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Credit Suisse Floating is 6.59 times less risky than Fidelity Advisor. It trades about 0.17 of its potential returns per unit of risk. Fidelity Advisor Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,413 in Fidelity Advisor Energy on November 3, 2024 and sell it today you would earn a total of 377.00 from holding Fidelity Advisor Energy or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Fidelity Advisor Energy
Performance |
| Timeline |
| Credit Suisse Floating |
| Fidelity Advisor Energy |
Credit Suisse and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Fidelity Advisor
The main advantage of trading using opposite Credit Suisse and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Credit Suisse vs. Federated Government Income | Credit Suisse vs. Oklahoma Municipal Fund | Credit Suisse vs. Intermediate Term Tax Free Bond | Credit Suisse vs. Franklin Adjustable Government |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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