Correlation Between Credit Suisse and Global X
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse X Links and Global X Funds, you can compare the effects of market volatilities on Credit Suisse and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Global X.
Diversification Opportunities for Credit Suisse and Global X
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and Global is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 X Links are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Credit Suisse i.e., Credit Suisse and Global X go up and down completely randomly.
Pair Corralation between Credit Suisse and Global X
Given the investment horizon of 90 days Credit Suisse is expected to generate 65.97 times less return on investment than Global X. But when comparing it to its historical volatility, Credit Suisse X Links is 110.63 times less risky than Global X. It trades about 0.09 of its potential returns per unit of risk. Global X Funds is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,433,200 in Global X Funds on August 30, 2024 and sell it today you would lose (10,430,179) from holding Global X Funds or give up 99.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.34% |
| Values | Daily Returns |
Credit Suisse X Links vs. Global X Funds
Performance |
| Timeline |
| Credit Suisse X |
| Global X Funds |
Credit Suisse and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Global X
The main advantage of trading using opposite Credit Suisse and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Global X Alternative | Credit Suisse vs. Global X Russell |
| Global X vs. Freedom Day Dividend | Global X vs. Franklin Templeton ETF | Global X vs. iShares MSCI China | Global X vs. Tidal Trust II |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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