Correlation Between Credit Suisse and Short Term
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Short Term 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 Short Term 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 Short Term Government Fund, you can compare the effects of market volatilities on Credit Suisse and Short Term 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 Short Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Short Term.
Diversification Opportunities for Credit Suisse and Short Term
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CREDIT and Short is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Short Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Government 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 Short Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Government has no effect on the direction of Credit Suisse i.e., Credit Suisse and Short Term go up and down completely randomly.
Pair Corralation between Credit Suisse and Short Term
Assuming the 90 days horizon Credit Suisse Floating is expected to under-perform the Short Term. But the mutual fund apears to be less risky and, when comparing its historical volatility, Credit Suisse Floating is 1.08 times less risky than Short Term. The mutual fund trades about -0.44 of its potential returns per unit of risk. The Short Term Government Fund is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 908.00 in Short Term Government Fund on December 13, 2024 and sell it today you would earn a total of 5.00 from holding Short Term Government Fund or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Short Term Government Fund
Performance |
| Timeline |
| Credit Suisse Floating |
| Short Term Government |
Credit Suisse and Short Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Short Term
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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