Correlation Between Credit Suisse and Parametric Commodity
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Parametric Commodity 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 Parametric Commodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Modity and Parametric Modity Strategy, you can compare the effects of market volatilities on Credit Suisse and Parametric Commodity 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 Parametric Commodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Parametric Commodity.
Diversification Opportunities for Credit Suisse and Parametric Commodity
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and Parametric is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Modity and Parametric Modity Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parametric Commodity 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 Modity are associated (or correlated) with Parametric Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parametric Commodity has no effect on the direction of Credit Suisse i.e., Credit Suisse and Parametric Commodity go up and down completely randomly.
Pair Corralation between Credit Suisse and Parametric Commodity
Assuming the 90 days horizon Credit Suisse Modity is expected to generate 1.29 times more return on investment than Parametric Commodity. However, Credit Suisse is 1.29 times more volatile than Parametric Modity Strategy. It trades about 0.47 of its potential returns per unit of risk. Parametric Modity Strategy is currently generating about 0.42 per unit of risk. If you would invest 2,133 in Credit Suisse Modity on October 23, 2024 and sell it today you would earn a total of 154.00 from holding Credit Suisse Modity or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Modity vs. Parametric Modity Strategy
Performance |
| Timeline |
| Credit Suisse Modity |
| Parametric Commodity |
Credit Suisse and Parametric Commodity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Parametric Commodity
The main advantage of trading using opposite Credit Suisse and Parametric Commodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Parametric Commodity 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 Parametric Commodity will offset losses from the drop in Parametric Commodity's long position.| Credit Suisse vs. Mutual Of America | Credit Suisse vs. Ultrasmall Cap Profund Ultrasmall Cap | Credit Suisse vs. Lsv Small Cap | Credit Suisse vs. Mid Cap Value Profund |
| Parametric Commodity vs. Clarion Partners Real | Parametric Commodity vs. Lazard Global Listed | Parametric Commodity vs. Blackrock Commodity Strategies | Parametric Commodity vs. Franklin High Yield |
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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