Correlation Between Pimco Commoditiesplus and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Pimco Commoditiesplus 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 Pimco Commoditiesplus and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Moditiesplus Strategy and Credit Suisse Modity, you can compare the effects of market volatilities on Pimco Commoditiesplus 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 Pimco Commoditiesplus with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Commoditiesplus and Credit Suisse.
Diversification Opportunities for Pimco Commoditiesplus and Credit Suisse
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Credit is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Moditiesplus Strategy 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 Pimco Commoditiesplus 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 Pimco Moditiesplus Strategy 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 Pimco Commoditiesplus i.e., Pimco Commoditiesplus and Credit Suisse go up and down completely randomly.
Pair Corralation between Pimco Commoditiesplus and Credit Suisse
Assuming the 90 days horizon Pimco Moditiesplus Strategy is expected to generate 1.31 times more return on investment than Credit Suisse. However, Pimco Commoditiesplus is 1.31 times more volatile than Credit Suisse Modity. It trades about 0.02 of its potential returns per unit of risk. Credit Suisse Modity is currently generating about 0.0 per unit of risk. If you would invest 494.00 in Pimco Moditiesplus Strategy on August 26, 2024 and sell it today you would earn a total of 36.00 from holding Pimco Moditiesplus Strategy or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Moditiesplus Strategy vs. Credit Suisse Modity
Performance |
| Timeline |
| Pimco Commoditiesplus |
| Credit Suisse Modity |
Pimco Commoditiesplus and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Commoditiesplus and Credit Suisse
The main advantage of trading using opposite Pimco Commoditiesplus and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Commoditiesplus 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.| Pimco Commoditiesplus vs. Pimco Rae Worldwide | Pimco Commoditiesplus vs. Pimco Rae Worldwide | Pimco Commoditiesplus vs. Pimco Rae Worldwide | Pimco Commoditiesplus vs. Pimco Rae Worldwide |
| Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Managed | Credit Suisse vs. Credit Suisse Floating |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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