Correlation Between Credit Suisse and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Barclays ETN 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 Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse and Barclays ETN Select, you can compare the effects of market volatilities on Credit Suisse and Barclays ETN 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 Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Barclays ETN.
Diversification Opportunities for Credit Suisse and Barclays ETN
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Credit and Barclays is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse and Barclays ETN Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN Select 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 are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN Select has no effect on the direction of Credit Suisse i.e., Credit Suisse and Barclays ETN go up and down completely randomly.
Pair Corralation between Credit Suisse and Barclays ETN
Given the investment horizon of 90 days Credit Suisse is expected to generate 6.86 times less return on investment than Barclays ETN. In addition to that, Credit Suisse is 5.36 times more volatile than Barclays ETN Select. It trades about 0.0 of its total potential returns per unit of risk. Barclays ETN Select is currently generating about 0.13 per unit of volatility. If you would invest 1,724 in Barclays ETN Select on August 28, 2024 and sell it today you would earn a total of 1,233 from holding Barclays ETN Select or generate 71.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 25.21% |
| Values | Daily Returns |
Credit Suisse vs. Barclays ETN Select
Performance |
| Timeline |
| Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barclays ETN Select |
Credit Suisse and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Barclays ETN
The main advantage of trading using opposite Credit Suisse and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| Credit Suisse vs. UBS AG London | Credit Suisse vs. ETRACS 2xMonthly Pay | Credit Suisse vs. UBS AG London |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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