Correlation Between Thrivent High and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Credit Suisse X Links, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Credit Suisse.
Diversification Opportunities for Thrivent High and Credit Suisse
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Credit is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Credit Suisse X Links in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse X and Thrivent High 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 Thrivent High Yield 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 X has no effect on the direction of Thrivent High i.e., Thrivent High and Credit Suisse go up and down completely randomly.
Pair Corralation between Thrivent High and Credit Suisse
Assuming the 90 days horizon Thrivent High is expected to generate 5.16 times less return on investment than Credit Suisse. But when comparing it to its historical volatility, Thrivent High Yield is 9.52 times less risky than Credit Suisse. It trades about 0.21 of its potential returns per unit of risk. Credit Suisse X Links is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,154 in Credit Suisse X Links on August 28, 2024 and sell it today you would earn a total of 216.00 from holding Credit Suisse X Links or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Credit Suisse X Links
Performance |
| Timeline |
| Thrivent High Yield |
| Credit Suisse X |
Thrivent High and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Credit Suisse
The main advantage of trading using opposite Thrivent High and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| Credit Suisse vs. Aquagold International | Credit Suisse vs. Morningstar Unconstrained Allocation | Credit Suisse vs. High Yield Municipal Fund | Credit Suisse vs. Thrivent High Yield |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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