Correlation Between Credit Suisse and E Fixed
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and E Fixed 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 E Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Floating and The E Fixed, you can compare the effects of market volatilities on Credit Suisse and E Fixed 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 E Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and E Fixed.
Diversification Opportunities for Credit Suisse and E Fixed
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and HCIIX is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and The E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Fixed 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 Floating are associated (or correlated) with E Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Fixed has no effect on the direction of Credit Suisse i.e., Credit Suisse and E Fixed go up and down completely randomly.
Pair Corralation between Credit Suisse and E Fixed
Assuming the 90 days horizon Credit Suisse Floating is expected to generate 0.4 times more return on investment than E Fixed. However, Credit Suisse Floating is 2.47 times less risky than E Fixed. It trades about -0.08 of its potential returns per unit of risk. The E Fixed is currently generating about -0.3 per unit of risk. If you would invest 634.00 in Credit Suisse Floating on September 29, 2024 and sell it today you would lose (1.00) from holding Credit Suisse Floating or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. The E Fixed
Performance |
| Timeline |
| Credit Suisse Floating |
| E Fixed |
Credit Suisse and E Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and E Fixed
The main advantage of trading using opposite Credit Suisse and E Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, E Fixed 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 E Fixed will offset losses from the drop in E Fixed's long position.| Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Managed |
| E Fixed vs. Vanguard Total Stock | E Fixed vs. Vanguard 500 Index | E Fixed vs. Vanguard Total Stock | E Fixed vs. Vanguard Total Stock |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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