Correlation Between Credit Suisse and Hartford Moderate
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Hartford Moderate 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 Hartford Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Multialternative and Hartford Moderate Allocation, you can compare the effects of market volatilities on Credit Suisse and Hartford Moderate 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 Hartford Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Hartford Moderate.
Diversification Opportunities for Credit Suisse and Hartford Moderate
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CREDIT and HARTFORD is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Hartford Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Moderate 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 Multialternative are associated (or correlated) with Hartford Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Moderate has no effect on the direction of Credit Suisse i.e., Credit Suisse and Hartford Moderate go up and down completely randomly.
Pair Corralation between Credit Suisse and Hartford Moderate
Assuming the 90 days horizon Credit Suisse Multialternative is expected to generate 0.58 times more return on investment than Hartford Moderate. However, Credit Suisse Multialternative is 1.73 times less risky than Hartford Moderate. It trades about 0.09 of its potential returns per unit of risk. Hartford Moderate Allocation is currently generating about 0.02 per unit of risk. If you would invest 848.00 in Credit Suisse Multialternative on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Credit Suisse Multialternative or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Hartford Moderate Allocation
Performance |
| Timeline |
| Credit Suisse Multia |
| Hartford Moderate |
Credit Suisse and Hartford Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Hartford Moderate
The main advantage of trading using opposite Credit Suisse and Hartford Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Hartford Moderate 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 Hartford Moderate will offset losses from the drop in Hartford Moderate's long position.| Credit Suisse vs. Hartford Moderate Allocation | Credit Suisse vs. Growth Allocation Fund | Credit Suisse vs. Guidemark Large Cap | Credit Suisse vs. T Rowe Price |
| Hartford Moderate vs. Clearbridge Value Trust | Hartford Moderate vs. Amg Managers Montag | Hartford Moderate vs. Brown Advisory Small Cap | Hartford Moderate vs. HUMANA INC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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