Correlation Between Credit Suisse and UBS AG
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and UBS AG 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 UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse and UBS AG London, you can compare the effects of market volatilities on Credit Suisse and UBS AG 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 UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and UBS AG.
Diversification Opportunities for Credit Suisse and UBS AG
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and UBS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London 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 UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of Credit Suisse i.e., Credit Suisse and UBS AG go up and down completely randomly.
Pair Corralation between Credit Suisse and UBS AG
Given the investment horizon of 90 days Credit Suisse is expected to generate 4.02 times less return on investment than UBS AG. In addition to that, Credit Suisse is 5.45 times more volatile than UBS AG London. It trades about 0.0 of its total potential returns per unit of risk. UBS AG London is currently generating about 0.08 per unit of volatility. If you would invest 1,405 in UBS AG London on August 28, 2024 and sell it today you would earn a total of 509.00 from holding UBS AG London or generate 36.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.21% |
| Values | Daily Returns |
Credit Suisse vs. UBS AG London
Performance |
| Timeline |
| Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UBS AG London |
Credit Suisse and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and UBS AG
The main advantage of trading using opposite Credit Suisse and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| Credit Suisse vs. UBS AG London | Credit Suisse vs. ETRACS 2xMonthly Pay | Credit Suisse vs. UBS AG London |
| UBS AG vs. UBS AG London | UBS AG vs. UBS AG London | UBS AG vs. ETRACS Quarterly Pay | UBS AG vs. VanEck BDC Income |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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