Correlation Between Credit Suisse and Kinetics Small
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Kinetics Small 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 Kinetics Small 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 Kinetics Small Cap, you can compare the effects of market volatilities on Credit Suisse and Kinetics Small 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 Kinetics Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Kinetics Small.
Diversification Opportunities for Credit Suisse and Kinetics Small
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Credit and Kinetics is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Kinetics Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Small Cap 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 Kinetics Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Small Cap has no effect on the direction of Credit Suisse i.e., Credit Suisse and Kinetics Small go up and down completely randomly.
Pair Corralation between Credit Suisse and Kinetics Small
Assuming the 90 days horizon Credit Suisse is expected to generate 5.99 times less return on investment than Kinetics Small. But when comparing it to its historical volatility, Credit Suisse Multialternative is 10.55 times less risky than Kinetics Small. It trades about 0.41 of its potential returns per unit of risk. Kinetics Small Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 17,437 in Kinetics Small Cap on October 30, 2024 and sell it today you would earn a total of 1,405 from holding Kinetics Small Cap or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Kinetics Small Cap
Performance |
| Timeline |
| Credit Suisse Multia |
| Kinetics Small Cap |
Credit Suisse and Kinetics Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Kinetics Small
The main advantage of trading using opposite Credit Suisse and Kinetics Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Kinetics Small 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 Kinetics Small will offset losses from the drop in Kinetics Small's long position.| Credit Suisse vs. Alphacentric Hedged Market | Credit Suisse vs. Lord Abbett Diversified | Credit Suisse vs. Calvert Developed Market | Credit Suisse vs. Prudential Emerging Markets |
| Kinetics Small vs. Tiaa Cref Inflation Link | Kinetics Small vs. Ab Bond Inflation | Kinetics Small vs. Simt Multi Asset Inflation | Kinetics Small vs. Credit Suisse Multialternative |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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