Correlation Between Credit Suisse and Smi Dynamic
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Smi Dynamic 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 Smi Dynamic 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 Smi Dynamic Allocation, you can compare the effects of market volatilities on Credit Suisse and Smi Dynamic 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 Smi Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Smi Dynamic.
Diversification Opportunities for Credit Suisse and Smi Dynamic
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Smi is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Smi Dynamic Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smi Dynamic Allocation 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 Smi Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smi Dynamic Allocation has no effect on the direction of Credit Suisse i.e., Credit Suisse and Smi Dynamic go up and down completely randomly.
Pair Corralation between Credit Suisse and Smi Dynamic
Assuming the 90 days horizon Credit Suisse Multialternative is expected to generate 0.54 times more return on investment than Smi Dynamic. However, Credit Suisse Multialternative is 1.84 times less risky than Smi Dynamic. It trades about -0.05 of its potential returns per unit of risk. Smi Dynamic Allocation is currently generating about -0.08 per unit of risk. If you would invest 834.00 in Credit Suisse Multialternative on December 9, 2024 and sell it today you would lose (3.00) from holding Credit Suisse Multialternative or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Smi Dynamic Allocation
Performance |
| Timeline |
| Credit Suisse Multia |
| Smi Dynamic Allocation |
Credit Suisse and Smi Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Smi Dynamic
The main advantage of trading using opposite Credit Suisse and Smi Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Smi Dynamic 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 Smi Dynamic will offset losses from the drop in Smi Dynamic's long position.| Credit Suisse vs. Sprucegrove International Equity | ||
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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