Correlation Between Nebraska Municipal and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal 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 Nebraska Municipal and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebraska Municipal Fund and Credit Suisse Floating, you can compare the effects of market volatilities on Nebraska Municipal 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 Nebraska Municipal with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Credit Suisse.
Diversification Opportunities for Nebraska Municipal and Credit Suisse
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NEBRASKA and Credit is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Nebraska Municipal 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 Nebraska Municipal Fund 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 Floating has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Credit Suisse go up and down completely randomly.
Pair Corralation between Nebraska Municipal and Credit Suisse
Assuming the 90 days horizon Nebraska Municipal is expected to generate 4.0 times less return on investment than Credit Suisse. In addition to that, Nebraska Municipal is 1.22 times more volatile than Credit Suisse Floating. It trades about 0.04 of its total potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.21 per unit of volatility. If you would invest 526.00 in Credit Suisse Floating on August 29, 2024 and sell it today you would earn a total of 111.00 from holding Credit Suisse Floating or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebraska Municipal Fund vs. Credit Suisse Floating
Performance |
| Timeline |
| Nebraska Municipal |
| Credit Suisse Floating |
Nebraska Municipal and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebraska Municipal and Credit Suisse
The main advantage of trading using opposite Nebraska Municipal and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebraska Municipal 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.| Nebraska Municipal vs. Virginia Bond Fund | Nebraska Municipal vs. HUMANA INC | Nebraska Municipal vs. Aquagold International | Nebraska Municipal vs. Barloworld Ltd ADR |
| Credit Suisse vs. Federated Short Intermediate Duration | Credit Suisse vs. Ab Select Longshort | Credit Suisse vs. Nebraska Municipal Fund | Credit Suisse vs. Astor Longshort Fund |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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