Correlation Between Credit Suisse and Invesco Emerging
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Invesco Emerging 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 Invesco Emerging 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 Invesco Emerging Markets, you can compare the effects of market volatilities on Credit Suisse and Invesco Emerging 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 Invesco Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Invesco Emerging.
Diversification Opportunities for Credit Suisse and Invesco Emerging
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Credit and Invesco is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Invesco Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Emerging Markets 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 Invesco Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Emerging Markets has no effect on the direction of Credit Suisse i.e., Credit Suisse and Invesco Emerging go up and down completely randomly.
Pair Corralation between Credit Suisse and Invesco Emerging
Assuming the 90 days horizon Credit Suisse Multialternative is expected to generate 0.77 times more return on investment than Invesco Emerging. However, Credit Suisse Multialternative is 1.3 times less risky than Invesco Emerging. It trades about 0.05 of its potential returns per unit of risk. Invesco Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 799.00 in Credit Suisse Multialternative on November 9, 2024 and sell it today you would earn a total of 35.00 from holding Credit Suisse Multialternative or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Invesco Emerging Markets
Performance |
| Timeline |
| Credit Suisse Multia |
| Invesco Emerging Markets |
Credit Suisse and Invesco Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Invesco Emerging
The main advantage of trading using opposite Credit Suisse and Invesco Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Invesco Emerging 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 Invesco Emerging will offset losses from the drop in Invesco Emerging's long position.| Credit Suisse vs. Great West Goldman Sachs | Credit Suisse vs. Gold And Precious | Credit Suisse vs. World Precious Minerals | Credit Suisse vs. First Eagle Gold |
| Invesco Emerging vs. Firsthand Alternative Energy | Invesco Emerging vs. Ivy Natural Resources | Invesco Emerging vs. Invesco Energy Fund | Invesco Emerging vs. Fidelity Advisor Energy |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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