Correlation Between Mid-cap Value and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Mid-cap Value 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 Mid-cap Value and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Value Profund and Credit Suisse Modity, you can compare the effects of market volatilities on Mid-cap Value 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 Mid-cap Value with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Value and Credit Suisse.
Diversification Opportunities for Mid-cap Value and Credit Suisse
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mid-cap and Credit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Value Profund and Credit Suisse Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Modity and Mid-cap Value 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 Mid Cap Value Profund 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 Modity has no effect on the direction of Mid-cap Value i.e., Mid-cap Value and Credit Suisse go up and down completely randomly.
Pair Corralation between Mid-cap Value and Credit Suisse
Assuming the 90 days horizon Mid Cap Value Profund is expected to generate 0.87 times more return on investment than Credit Suisse. However, Mid Cap Value Profund is 1.15 times less risky than Credit Suisse. It trades about 0.26 of its potential returns per unit of risk. Credit Suisse Modity is currently generating about 0.18 per unit of risk. If you would invest 8,837 in Mid Cap Value Profund on November 3, 2024 and sell it today you would earn a total of 362.00 from holding Mid Cap Value Profund or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Value Profund vs. Credit Suisse Modity
Performance |
| Timeline |
| Mid Cap Value |
| Credit Suisse Modity |
Mid-cap Value and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Value and Credit Suisse
The main advantage of trading using opposite Mid-cap Value and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Value 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.| Mid-cap Value vs. Queens Road Small | Mid-cap Value vs. Great West Loomis Sayles | Mid-cap Value vs. Heartland Value Plus | Mid-cap Value vs. Small Cap Value Profund |
| Credit Suisse vs. Qs Global Equity | Credit Suisse vs. Ms Global Fixed | Credit Suisse vs. Mirova Global Green | Credit Suisse vs. Investec Global Franchise |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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