Correlation Between Credit Suisse and Calvert International
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Calvert International 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 Calvert International 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 Calvert International Equity, you can compare the effects of market volatilities on Credit Suisse and Calvert International 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 Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Calvert International.
Diversification Opportunities for Credit Suisse and Calvert International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Credit and Calvert is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Credit Suisse i.e., Credit Suisse and Calvert International go up and down completely randomly.
Pair Corralation between Credit Suisse and Calvert International
Assuming the 90 days horizon Credit Suisse is expected to generate 2.0 times less return on investment than Calvert International. But when comparing it to its historical volatility, Credit Suisse Multialternative is 2.19 times less risky than Calvert International. It trades about 0.27 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,412 in Calvert International Equity on November 8, 2024 and sell it today you would earn a total of 101.00 from holding Calvert International Equity or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Calvert International Equity
Performance |
| Timeline |
| Credit Suisse Multia |
| Calvert International |
Credit Suisse and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Calvert International
The main advantage of trading using opposite Credit Suisse and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Calvert International 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 Calvert International will offset losses from the drop in Calvert International's long position.| Credit Suisse vs. American Funds Retirement | Credit Suisse vs. Dimensional Retirement Income | Credit Suisse vs. Transamerica Cleartrack Retirement | Credit Suisse vs. Franklin Lifesmart Retirement |
| Calvert International vs. Gmo Emerging Ntry | Calvert International vs. Morningstar Defensive Bond | Calvert International vs. Flexible Bond Portfolio | Calvert International vs. Ab Bond Inflation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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