Correlation Between Credit Suisse and Western Asset
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Western Asset 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 Western Asset 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 Western Asset Adjustable, you can compare the effects of market volatilities on Credit Suisse and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Western Asset.
Diversification Opportunities for Credit Suisse and Western Asset
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and Western is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Western Asset Adjustable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Adjustable 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Adjustable has no effect on the direction of Credit Suisse i.e., Credit Suisse and Western Asset go up and down completely randomly.
Pair Corralation between Credit Suisse and Western Asset
Assuming the 90 days horizon Credit Suisse Floating is not expected to generate positive returns. Moreover, Credit Suisse is 1.54 times more volatile than Western Asset Adjustable. It trades away all of its potential returns to assume current level of volatility. Western Asset Adjustable is currently generating about 0.1 per unit of risk. If you would invest 917.00 in Western Asset Adjustable on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Western Asset Adjustable or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Western Asset Adjustable
Performance |
| Timeline |
| Credit Suisse Floating |
| Western Asset Adjustable |
Credit Suisse and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Western Asset
The main advantage of trading using opposite Credit Suisse and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Credit Suisse vs. Columbia Real Estate | Credit Suisse vs. Tiaa Cref Real Estate | Credit Suisse vs. Real Estate Ultrasector | Credit Suisse vs. Amg Managers Centersquare |
| Western Asset vs. Western Asset Adjustable | Western Asset vs. Short Term Fund A | Western Asset vs. Western Asset Mortgage | Western Asset vs. Western Asset Intermediate Term |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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