Correlation Between Credit Suisse and Barclays PLC
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Barclays PLC 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 Barclays PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Group and Barclays PLC ADR, you can compare the effects of market volatilities on Credit Suisse and Barclays PLC 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 Barclays PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Barclays PLC.
Diversification Opportunities for Credit Suisse and Barclays PLC
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Barclays is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Group and Barclays PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC ADR 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 Group are associated (or correlated) with Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC ADR has no effect on the direction of Credit Suisse i.e., Credit Suisse and Barclays PLC go up and down completely randomly.
Pair Corralation between Credit Suisse and Barclays PLC
If you would invest 1,259 in Barclays PLC ADR on August 26, 2024 and sell it today you would earn a total of 38.00 from holding Barclays PLC ADR or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Credit Suisse Group vs. Barclays PLC ADR
Performance |
| Timeline |
| Credit Suisse Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barclays PLC ADR |
Credit Suisse and Barclays PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Barclays PLC
The main advantage of trading using opposite Credit Suisse and Barclays PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Barclays PLC 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 Barclays PLC will offset losses from the drop in Barclays PLC's long position.| Credit Suisse vs. Barclays PLC ADR | Credit Suisse vs. HSBC Holdings PLC | Credit Suisse vs. ING Group NV | Credit Suisse vs. Citigroup |
| Barclays PLC vs. Banco Bilbao Viscaya | Barclays PLC vs. Banco Santander SA | Barclays PLC vs. UBS Group AG | Barclays PLC vs. HSBC Holdings PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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