Correlation Between Credit Suisse and Dgi Investment
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Dgi Investment 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 Dgi Investment 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 Dgi Investment Trust, you can compare the effects of market volatilities on Credit Suisse and Dgi Investment 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 Dgi Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Dgi Investment.
Diversification Opportunities for Credit Suisse and Dgi Investment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Dgi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Dgi Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgi Investment Trust 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 Dgi Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgi Investment Trust has no effect on the direction of Credit Suisse i.e., Credit Suisse and Dgi Investment go up and down completely randomly.
Pair Corralation between Credit Suisse and Dgi Investment
Assuming the 90 days horizon Credit Suisse Floating is not expected to generate positive returns. However, Credit Suisse Floating is 5.79 times less risky than Dgi Investment. It waists most of its returns potential to compensate for thr risk taken. Dgi Investment is generating about 0.14 per unit of risk. If you would invest 1,162 in Dgi Investment Trust on November 4, 2024 and sell it today you would earn a total of 17.00 from holding Dgi Investment Trust or generate 1.46% 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. Dgi Investment Trust
Performance |
| Timeline |
| Credit Suisse Floating |
| Dgi Investment Trust |
Credit Suisse and Dgi Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Dgi Investment
The main advantage of trading using opposite Credit Suisse and Dgi Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Dgi Investment 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 Dgi Investment will offset losses from the drop in Dgi Investment'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 |
| Dgi Investment vs. Invesco Energy Fund | Dgi Investment vs. Icon Natural Resources | Dgi Investment vs. Alpsalerian Energy Infrastructure | Dgi Investment vs. Pimco Energy Tactical |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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