Correlation Between Parametric Modity and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Parametric Modity and Credit Suisse 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 Parametric Modity and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parametric Modity Strategy and Credit Suisse Modity, you can compare the effects of market volatilities on Parametric Modity and Credit Suisse 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 Parametric Modity with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parametric Modity and Credit Suisse.
Diversification Opportunities for Parametric Modity and Credit Suisse
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Parametric and Credit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Parametric Modity Strategy and Credit Suisse Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Modity and Parametric Modity 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 Parametric Modity Strategy are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Modity has no effect on the direction of Parametric Modity i.e., Parametric Modity and Credit Suisse go up and down completely randomly.
Pair Corralation between Parametric Modity and Credit Suisse
Assuming the 90 days horizon Parametric Modity Strategy is expected to generate 0.97 times more return on investment than Credit Suisse. However, Parametric Modity Strategy is 1.03 times less risky than Credit Suisse. It trades about 0.08 of its potential returns per unit of risk. Credit Suisse Modity is currently generating about 0.06 per unit of risk. If you would invest 555.00 in Parametric Modity Strategy on November 3, 2024 and sell it today you would earn a total of 82.00 from holding Parametric Modity Strategy or generate 14.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Parametric Modity Strategy vs. Credit Suisse Modity
Performance |
| Timeline |
| Parametric Modity |
| Credit Suisse Modity |
Parametric Modity and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parametric Modity and Credit Suisse
The main advantage of trading using opposite Parametric Modity and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parametric Modity position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Parametric Modity vs. Clarion Partners Real | Parametric Modity vs. Lazard Global Listed | Parametric Modity vs. Blackrock Commodity Strategies | Parametric Modity vs. Franklin High Yield |
| Credit Suisse vs. Qs Global Equity | Credit Suisse vs. Ms Global Fixed | Credit Suisse vs. Mirova Global Green | Credit Suisse vs. Investec Global Franchise |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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