Correlation Between Credit Suisse and Profunds Ultrashort
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Profunds Ultrashort 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 Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100, you can compare the effects of market volatilities on Credit Suisse and Profunds Ultrashort 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 Profunds Ultrashort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Profunds Ultrashort.
Diversification Opportunities for Credit Suisse and Profunds Ultrashort
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Credit and Profunds is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Profunds Ultrashort Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Ultrashort 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 Profunds Ultrashort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Ultrashort has no effect on the direction of Credit Suisse i.e., Credit Suisse and Profunds Ultrashort go up and down completely randomly.
Pair Corralation between Credit Suisse and Profunds Ultrashort
Assuming the 90 days horizon Credit Suisse Floating is expected to generate 0.07 times more return on investment than Profunds Ultrashort. However, Credit Suisse Floating is 14.36 times less risky than Profunds Ultrashort. It trades about 0.16 of its potential returns per unit of risk. Profunds Ultrashort Nasdaq 100 is currently generating about -0.09 per unit of risk. If you would invest 618.00 in Credit Suisse Floating on November 7, 2024 and sell it today you would earn a total of 20.00 from holding Credit Suisse Floating or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Profunds Ultrashort Nasdaq 100
Performance |
| Timeline |
| Credit Suisse Floating |
| Profunds Ultrashort |
Credit Suisse and Profunds Ultrashort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Profunds Ultrashort
The main advantage of trading using opposite Credit Suisse and Profunds Ultrashort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Profunds Ultrashort 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 Profunds Ultrashort will offset losses from the drop in Profunds Ultrashort's long position.| Credit Suisse vs. Tiaa Cref Lifestyle Moderate | Credit Suisse vs. Dimensional Retirement Income | Credit Suisse vs. Franklin Lifesmart Retirement | Credit Suisse vs. Tiaa Cref Lifecycle Retirement |
| Profunds Ultrashort vs. Retirement Living Through | Profunds Ultrashort vs. Sierra E Retirement | Profunds Ultrashort vs. Fidelity Managed Retirement | Profunds Ultrashort vs. Voya Target Retirement |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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