Correlation Between Credit Suisse and The Gabelli
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and The Gabelli 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 The Gabelli 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 The Gabelli Small, you can compare the effects of market volatilities on Credit Suisse and The Gabelli 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 The Gabelli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and The Gabelli.
Diversification Opportunities for Credit Suisse and The Gabelli
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and The is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Modity and The Gabelli Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Small 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 The Gabelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Small has no effect on the direction of Credit Suisse i.e., Credit Suisse and The Gabelli go up and down completely randomly.
Pair Corralation between Credit Suisse and The Gabelli
Assuming the 90 days horizon Credit Suisse Modity is expected to under-perform the The Gabelli. But the mutual fund apears to be less risky and, when comparing its historical volatility, Credit Suisse Modity is 1.87 times less risky than The Gabelli. The mutual fund trades about -0.09 of its potential returns per unit of risk. The The Gabelli Small is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 4,343 in The Gabelli Small on September 4, 2024 and sell it today you would earn a total of 372.00 from holding The Gabelli Small or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Credit Suisse Modity vs. The Gabelli Small
Performance |
| Timeline |
| Credit Suisse Modity |
| Gabelli Small |
Credit Suisse and The Gabelli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and The Gabelli
The main advantage of trading using opposite Credit Suisse and The Gabelli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, The Gabelli 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 The Gabelli will offset losses from the drop in The Gabelli's long position.| Credit Suisse vs. Credit Suisse Managed | Credit Suisse vs. Credit Suisse Managed | Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Strategic |
| The Gabelli vs. The Gabelli Growth | The Gabelli vs. Gamco Global Telecommunications | The Gabelli vs. Aquagold International | The Gabelli vs. Morningstar Unconstrained Allocation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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