Correlation Between Credit Suisse and Leuthold Global
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Leuthold Global 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 Leuthold Global 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 Leuthold Global Fund, you can compare the effects of market volatilities on Credit Suisse and Leuthold Global 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 Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Leuthold Global.
Diversification Opportunities for Credit Suisse and Leuthold Global
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Credit and Leuthold is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global 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 Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of Credit Suisse i.e., Credit Suisse and Leuthold Global go up and down completely randomly.
Pair Corralation between Credit Suisse and Leuthold Global
Assuming the 90 days horizon Credit Suisse is expected to generate 1.45 times less return on investment than Leuthold Global. But when comparing it to its historical volatility, Credit Suisse Multialternative is 1.6 times less risky than Leuthold Global. It trades about 0.25 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 877.00 in Leuthold Global Fund on October 20, 2024 and sell it today you would earn a total of 18.00 from holding Leuthold Global Fund or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Leuthold Global Fund
Performance |
| Timeline |
| Credit Suisse Multia |
| Leuthold Global |
Credit Suisse and Leuthold Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Leuthold Global
The main advantage of trading using opposite Credit Suisse and Leuthold Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Leuthold Global 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 Leuthold Global will offset losses from the drop in Leuthold Global's long position.| Credit Suisse vs. Thrivent Natural Resources | Credit Suisse vs. Transamerica Mlp Energy | Credit Suisse vs. Ivy Natural Resources | Credit Suisse vs. Jennison Natural Resources |
| Leuthold Global vs. Leuthold Global Fund | Leuthold Global vs. Leuthold Select Industries | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Leuthold E Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |