Correlation Between Credit Suisse and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Lord Abbett 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 Lord Abbett 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 Lord Abbett Inv, you can compare the effects of market volatilities on Credit Suisse and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Lord Abbett.
Diversification Opportunities for Credit Suisse and Lord Abbett
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Credit and Lord is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Lord Abbett Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inv 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Inv has no effect on the direction of Credit Suisse i.e., Credit Suisse and Lord Abbett go up and down completely randomly.
Pair Corralation between Credit Suisse and Lord Abbett
Assuming the 90 days horizon Credit Suisse Floating is expected to generate 1.28 times more return on investment than Lord Abbett. However, Credit Suisse is 1.28 times more volatile than Lord Abbett Inv. It trades about 0.19 of its potential returns per unit of risk. Lord Abbett Inv is currently generating about 0.24 per unit of risk. If you would invest 560.00 in Credit Suisse Floating on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Credit Suisse Floating or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Lord Abbett Inv
Performance |
| Timeline |
| Credit Suisse Floating |
| Lord Abbett Inv |
Credit Suisse and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Lord Abbett
The main advantage of trading using opposite Credit Suisse and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Credit Suisse vs. Lord Abbett Inv | Credit Suisse vs. SCOR PK | Credit Suisse vs. Morningstar Unconstrained Allocation | Credit Suisse vs. Thrivent High Yield |
| Lord Abbett vs. SCOR PK | Lord Abbett vs. Morningstar Unconstrained Allocation | Lord Abbett vs. Thrivent High Yield | Lord Abbett vs. Via Renewables |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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