Correlation Between Emerging Markets and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Emerging Markets 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 Emerging Markets and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Emerging Markets and Credit Suisse Floating, you can compare the effects of market volatilities on Emerging Markets 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 Emerging Markets with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Credit Suisse.
Diversification Opportunities for Emerging Markets and Credit Suisse
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerging and Credit is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding The Emerging Markets and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Emerging Markets 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 The Emerging Markets 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 Floating has no effect on the direction of Emerging Markets i.e., Emerging Markets and Credit Suisse go up and down completely randomly.
Pair Corralation between Emerging Markets and Credit Suisse
Assuming the 90 days horizon The Emerging Markets is expected to generate 7.4 times more return on investment than Credit Suisse. However, Emerging Markets is 7.4 times more volatile than Credit Suisse Floating. It trades about 0.08 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.25 per unit of risk. If you would invest 1,891 in The Emerging Markets on September 13, 2024 and sell it today you would earn a total of 21.00 from holding The Emerging Markets or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Emerging Markets vs. Credit Suisse Floating
Performance |
| Timeline |
| Emerging Markets |
| Credit Suisse Floating |
Emerging Markets and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Credit Suisse
The main advantage of trading using opposite Emerging Markets and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets 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.| Emerging Markets vs. Ab Global Risk | Emerging Markets vs. Commonwealth Global Fund | Emerging Markets vs. 361 Global Longshort | Emerging Markets vs. Ab Global Bond |
| Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |