Correlation Between Fidelity Small and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Fidelity Small 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 Fidelity Small and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Credit Suisse Multialternative, you can compare the effects of market volatilities on Fidelity Small 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 Fidelity Small with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Credit Suisse.
Diversification Opportunities for Fidelity Small and Credit Suisse
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidelity and Credit is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia and Fidelity Small 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 Fidelity Small Cap 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 Multia has no effect on the direction of Fidelity Small i.e., Fidelity Small and Credit Suisse go up and down completely randomly.
Pair Corralation between Fidelity Small and Credit Suisse
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 4.11 times more return on investment than Credit Suisse. However, Fidelity Small is 4.11 times more volatile than Credit Suisse Multialternative. It trades about 0.08 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.05 per unit of risk. If you would invest 1,947 in Fidelity Small Cap on August 26, 2024 and sell it today you would earn a total of 848.00 from holding Fidelity Small Cap or generate 43.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Small Cap vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Fidelity Small Cap |
| Credit Suisse Multia |
Fidelity Small and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Credit Suisse
The main advantage of trading using opposite Fidelity Small and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small 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.| Fidelity Small vs. Fidelity Large Cap | Fidelity Small vs. Fidelity Emerging Markets | Fidelity Small vs. Aquagold International | Fidelity Small vs. Morningstar Unconstrained Allocation |
| Credit Suisse vs. Pace Smallmedium Value | Credit Suisse vs. Ab Discovery Value | Credit Suisse vs. Amg River Road | Credit Suisse vs. Fidelity Small Cap |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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