Correlation Between Credit Suisse and Voya Global
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Voya 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 Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse High and Voya Global Equity, you can compare the effects of market volatilities on Credit Suisse and Voya 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Voya Global.
Diversification Opportunities for Credit Suisse and Voya Global
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and Voya is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse High and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 High are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Credit Suisse i.e., Credit Suisse and Voya Global go up and down completely randomly.
Pair Corralation between Credit Suisse and Voya Global
Considering the 90-day investment horizon Credit Suisse High is expected to generate 0.96 times more return on investment than Voya Global. However, Credit Suisse High is 1.05 times less risky than Voya Global. It trades about 0.15 of its potential returns per unit of risk. Voya Global Equity is currently generating about 0.07 per unit of risk. If you would invest 206.00 in Credit Suisse High on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Credit Suisse High or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse High vs. Voya Global Equity
Performance |
| Timeline |
| Credit Suisse High |
| Voya Global Equity |
Credit Suisse and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Voya Global
The main advantage of trading using opposite Credit Suisse and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Voya 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 Voya Global will offset losses from the drop in Voya Global's long position.| Credit Suisse vs. MFS Investment Grade | Credit Suisse vs. Invesco High Income | Credit Suisse vs. Eaton Vance National | Credit Suisse vs. Nuveen California Select |
| Voya Global vs. Eaton Vance Risk | Voya Global vs. Blackrock Muniholdings Closed | Voya Global vs. DTF Tax Free | Voya Global vs. Eaton Vance Floating |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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