Correlation Between Credit Suisse and Pace Small/medium
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Pace Small/medium 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 Pace Small/medium 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 Pace Smallmedium Growth, you can compare the effects of market volatilities on Credit Suisse and Pace Small/medium 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 Pace Small/medium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Pace Small/medium.
Diversification Opportunities for Credit Suisse and Pace Small/medium
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Pace is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Pace Smallmedium Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Smallmedium Growth 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 Pace Small/medium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Smallmedium Growth has no effect on the direction of Credit Suisse i.e., Credit Suisse and Pace Small/medium go up and down completely randomly.
Pair Corralation between Credit Suisse and Pace Small/medium
Assuming the 90 days horizon Credit Suisse Floating is not expected to generate positive returns. However, Credit Suisse Floating is 11.78 times less risky than Pace Small/medium. It waists most of its returns potential to compensate for thr risk taken. Pace Small/medium is generating about 0.11 per unit of risk. If you would invest 1,298 in Pace Smallmedium Growth on November 4, 2024 and sell it today you would earn a total of 28.00 from holding Pace Smallmedium Growth or generate 2.16% 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. Pace Smallmedium Growth
Performance |
| Timeline |
| Credit Suisse Floating |
| Pace Smallmedium Growth |
Credit Suisse and Pace Small/medium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Pace Small/medium
The main advantage of trading using opposite Credit Suisse and Pace Small/medium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Pace Small/medium 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 Pace Small/medium will offset losses from the drop in Pace Small/medium'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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