Correlation Between Credit Suisse and Natwest Group
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Natwest Group 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 Natwest Group 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 Natwest Group PLC, you can compare the effects of market volatilities on Credit Suisse and Natwest Group 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 Natwest Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Natwest Group.
Diversification Opportunities for Credit Suisse and Natwest Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Natwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Group and Natwest Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natwest Group PLC 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 Natwest Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natwest Group PLC has no effect on the direction of Credit Suisse i.e., Credit Suisse and Natwest Group go up and down completely randomly.
Pair Corralation between Credit Suisse and Natwest Group
If you would invest 591.00 in Natwest Group PLC on November 9, 2024 and sell it today you would earn a total of 532.00 from holding Natwest Group PLC or generate 90.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Credit Suisse Group vs. Natwest Group PLC
Performance |
| Timeline |
| Credit Suisse Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Natwest Group PLC |
Credit Suisse and Natwest Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Natwest Group
The main advantage of trading using opposite Credit Suisse and Natwest Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Natwest Group 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 Natwest Group will offset losses from the drop in Natwest Group'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 |
| Natwest Group vs. ING Group NV | Natwest Group vs. HSBC Holdings PLC | Natwest Group vs. Banco Santander SA | Natwest Group vs. UBS Group AG |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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