Correlation Between Credit Suisse and Brookfield Real
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Brookfield Real 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 Brookfield Real 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 Brookfield Real Assets, you can compare the effects of market volatilities on Credit Suisse and Brookfield Real 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 Brookfield Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Brookfield Real.
Diversification Opportunities for Credit Suisse and Brookfield Real
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Credit and Brookfield is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse High and Brookfield Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Real Assets 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 Brookfield Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Real Assets has no effect on the direction of Credit Suisse i.e., Credit Suisse and Brookfield Real go up and down completely randomly.
Pair Corralation between Credit Suisse and Brookfield Real
Considering the 90-day investment horizon Credit Suisse High is expected to generate 1.66 times more return on investment than Brookfield Real. However, Credit Suisse is 1.66 times more volatile than Brookfield Real Assets. It trades about 0.12 of its potential returns per unit of risk. Brookfield Real Assets is currently generating about 0.18 per unit of risk. If you would invest 196.00 in Credit Suisse High on September 3, 2024 and sell it today you would earn a total of 24.00 from holding Credit Suisse High or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse High vs. Brookfield Real Assets
Performance |
| Timeline |
| Credit Suisse High |
| Brookfield Real Assets |
Credit Suisse and Brookfield Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Brookfield Real
The main advantage of trading using opposite Credit Suisse and Brookfield Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Brookfield Real 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 Brookfield Real will offset losses from the drop in Brookfield Real's long position.| Credit Suisse vs. Brookfield Real Assets | Credit Suisse vs. Guggenheim Strategic Opportunities | Credit Suisse vs. Cornerstone Strategic Return | Credit Suisse vs. Cornerstone Strategic Value |
| Brookfield Real vs. Pimco Dynamic Income | Brookfield Real vs. Pimco Corporate Income | Brookfield Real vs. Cornerstone Strategic Value | Brookfield Real vs. Cornerstone Strategic Return |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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