Correlation Between Global X and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X MLP and Credit Suisse X Links, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Credit Suisse.
Diversification Opportunities for Global X and Credit Suisse
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Credit is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global X MLP 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 Global X 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 Global X MLP 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 Global X i.e., Global X and Credit Suisse go up and down completely randomly.
Pair Corralation between Global X and Credit Suisse
Given the investment horizon of 90 days Global X MLP is expected to generate 0.6 times more return on investment than Credit Suisse. However, Global X MLP is 1.67 times less risky than Credit Suisse. It trades about 0.53 of its potential returns per unit of risk. Credit Suisse X Links is currently generating about -0.25 per unit of risk. If you would invest 4,666 in Global X MLP on August 30, 2024 and sell it today you would earn a total of 493.00 from holding Global X MLP or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X MLP vs. Credit Suisse X Links
Performance |
| Timeline |
| Global X MLP |
| Credit Suisse X |
Global X and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Credit Suisse
The main advantage of trading using opposite Global X and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Global X MLP | Global X vs. InfraCap MLP ETF | Global X vs. Barclays ETN Select | Global X vs. Alerian Energy Infrastructure |
| Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Global X Russell | Credit Suisse vs. RiverNorthDoubleLine Strategic Opportunity |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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