Correlation Between Credit Suisse and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Shelton Emerging 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 Shelton Emerging 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 Shelton Emerging Markets, you can compare the effects of market volatilities on Credit Suisse and Shelton Emerging 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 Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Shelton Emerging.
Diversification Opportunities for Credit Suisse and Shelton Emerging
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Credit and Shelton is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Modity and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets 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 Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Credit Suisse i.e., Credit Suisse and Shelton Emerging go up and down completely randomly.
Pair Corralation between Credit Suisse and Shelton Emerging
Assuming the 90 days horizon Credit Suisse Modity is expected to generate 0.88 times more return on investment than Shelton Emerging. However, Credit Suisse Modity is 1.14 times less risky than Shelton Emerging. It trades about -0.02 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about -0.18 per unit of risk. If you would invest 1,920 in Credit Suisse Modity on August 30, 2024 and sell it today you would lose (8.00) from holding Credit Suisse Modity or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Modity vs. Shelton Emerging Markets
Performance |
| Timeline |
| Credit Suisse Modity |
| Shelton Emerging Markets |
Credit Suisse and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Shelton Emerging
The main advantage of trading using opposite Credit Suisse and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Shelton Emerging 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Credit Suisse vs. American Century Diversified | Credit Suisse vs. Jhancock Diversified Macro | Credit Suisse vs. Small Cap Stock | Credit Suisse vs. Guggenheim Diversified Income |
| Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. HUMANA INC | Shelton Emerging vs. Aquagold International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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