Correlation Between Credit Suisse and Aston Montag
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Aston Montag 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 Aston Montag 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 Aston Montag Caldwell, you can compare the effects of market volatilities on Credit Suisse and Aston Montag 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 Aston Montag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Aston Montag.
Diversification Opportunities for Credit Suisse and Aston Montag
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Credit and Aston is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Modity and Aston Montag Caldwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Montag Caldwell 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 Aston Montag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Montag Caldwell has no effect on the direction of Credit Suisse i.e., Credit Suisse and Aston Montag go up and down completely randomly.
Pair Corralation between Credit Suisse and Aston Montag
Assuming the 90 days horizon Credit Suisse Modity is expected to under-perform the Aston Montag. But the mutual fund apears to be less risky and, when comparing its historical volatility, Credit Suisse Modity is 1.34 times less risky than Aston Montag. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Aston Montag Caldwell is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,305 in Aston Montag Caldwell on September 3, 2024 and sell it today you would earn a total of 61.00 from holding Aston Montag Caldwell or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Modity vs. Aston Montag Caldwell
Performance |
| Timeline |
| Credit Suisse Modity |
| Aston Montag Caldwell |
Credit Suisse and Aston Montag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Aston Montag
The main advantage of trading using opposite Credit Suisse and Aston Montag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Aston Montag 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 Aston Montag will offset losses from the drop in Aston Montag's long position.| Credit Suisse vs. The Gabelli Small | Credit Suisse vs. Blackrock Sm Cap | Credit Suisse vs. Fuller Thaler Behavioral | Credit Suisse vs. T Rowe Price |
| Aston Montag vs. Credit Suisse Modity | Aston Montag vs. Selected American Shares | Aston Montag vs. Causeway International Value | Aston Montag vs. Marsico Focus Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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