Correlation Between Credit Suisse and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Oppenheimer 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 Oppenheimer 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 Oppenheimer International Diversified, you can compare the effects of market volatilities on Credit Suisse and Oppenheimer 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Oppenheimer International.
Diversification Opportunities for Credit Suisse and Oppenheimer International
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Oppenheimer is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Oppenheimer International Dive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Credit Suisse i.e., Credit Suisse and Oppenheimer International go up and down completely randomly.
Pair Corralation between Credit Suisse and Oppenheimer International
Assuming the 90 days horizon Credit Suisse Multialternative is expected to generate 0.41 times more return on investment than Oppenheimer International. However, Credit Suisse Multialternative is 2.42 times less risky than Oppenheimer International. It trades about 0.31 of its potential returns per unit of risk. Oppenheimer International Diversified is currently generating about -0.04 per unit of risk. If you would invest 903.00 in Credit Suisse Multialternative on September 4, 2024 and sell it today you would earn a total of 18.00 from holding Credit Suisse Multialternative or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Oppenheimer International Dive
Performance |
| Timeline |
| Credit Suisse Multia |
| Oppenheimer International |
Credit Suisse and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Oppenheimer International
The main advantage of trading using opposite Credit Suisse and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Oppenheimer 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.| Credit Suisse vs. Siit Ultra Short | Credit Suisse vs. Angel Oak Ultrashort | Credit Suisse vs. Sterling Capital Short | Credit Suisse vs. Maryland Short Term Tax Free |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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