Correlation Between Credit Suisse and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Jhancock Diversified 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 Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Strategic and Jhancock Diversified Macro, you can compare the effects of market volatilities on Credit Suisse and Jhancock Diversified 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 Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Jhancock Diversified.
Diversification Opportunities for Credit Suisse and Jhancock Diversified
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and Jhancock is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Strategic and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified 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 Strategic are associated (or correlated) with Jhancock Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Diversified has no effect on the direction of Credit Suisse i.e., Credit Suisse and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Credit Suisse and Jhancock Diversified
Assuming the 90 days horizon Credit Suisse Strategic is expected to generate 0.23 times more return on investment than Jhancock Diversified. However, Credit Suisse Strategic is 4.41 times less risky than Jhancock Diversified. It trades about 0.2 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about 0.04 per unit of risk. If you would invest 943.00 in Credit Suisse Strategic on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Credit Suisse Strategic or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Strategic vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Credit Suisse Strategic |
| Jhancock Diversified |
Credit Suisse and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Jhancock Diversified
The main advantage of trading using opposite Credit Suisse and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Jhancock Diversified 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 Jhancock Diversified will offset losses from the drop in Jhancock Diversified's long position.| Credit Suisse vs. Technology Ultrasector Profund | Credit Suisse vs. Hennessy Technology Fund | Credit Suisse vs. Fidelity Advisor Technology | Credit Suisse vs. Invesco Technology Fund |
| Jhancock Diversified vs. Sentinel Small Pany | Jhancock Diversified vs. Blackrock Sm Cap | Jhancock Diversified vs. Tiaa Cref Small Cap Blend | Jhancock Diversified vs. Davenport Small Cap |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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