Correlation Between Credit Suisse and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Oppenheimer Senior 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 Oppenheimer Senior 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 Oppenheimer Senior Floating, you can compare the effects of market volatilities on Credit Suisse and Oppenheimer Senior 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 Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Oppenheimer Senior.
Diversification Opportunities for Credit Suisse and Oppenheimer Senior
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Credit and Oppenheimer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior 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 Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Credit Suisse i.e., Credit Suisse and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Credit Suisse and Oppenheimer Senior
Assuming the 90 days horizon Credit Suisse Floating is not expected to generate positive returns. However, Credit Suisse Floating is 1.07 times less risky than Oppenheimer Senior. It waists most of its returns potential to compensate for thr risk taken. Oppenheimer Senior is generating about 0.08 per unit of risk. If you would invest 659.00 in Oppenheimer Senior Floating on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Oppenheimer Senior Floating or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Credit Suisse Floating |
| Oppenheimer Senior |
Credit Suisse and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Oppenheimer Senior
The main advantage of trading using opposite Credit Suisse and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Oppenheimer Senior 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 Oppenheimer Senior will offset losses from the drop in Oppenheimer Senior's long position.| Credit Suisse vs. Transamerica Asset Allocation | Credit Suisse vs. Slow Capital Growth | Credit Suisse vs. Qs Global Equity | Credit Suisse vs. Barings Global Floating |
| Oppenheimer Senior vs. Oppenheimer Main Street | Oppenheimer Senior vs. Oppenheimer Intl Small | Oppenheimer Senior vs. Oppenheimer Main Street | Oppenheimer Senior vs. Oppenheimer Global Strtgc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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