Correlation Between ETRACS 2xMonthly and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both ETRACS 2xMonthly 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 ETRACS 2xMonthly and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETRACS 2xMonthly Pay and Credit Suisse, you can compare the effects of market volatilities on ETRACS 2xMonthly 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 ETRACS 2xMonthly with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETRACS 2xMonthly and Credit Suisse.
Diversification Opportunities for ETRACS 2xMonthly and Credit Suisse
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ETRACS and Credit is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding ETRACS 2xMonthly Pay and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse and ETRACS 2xMonthly 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 ETRACS 2xMonthly Pay 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 has no effect on the direction of ETRACS 2xMonthly i.e., ETRACS 2xMonthly and Credit Suisse go up and down completely randomly.
Pair Corralation between ETRACS 2xMonthly and Credit Suisse
If you would invest 1,129 in Credit Suisse on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Credit Suisse or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
ETRACS 2xMonthly Pay vs. Credit Suisse
Performance |
| Timeline |
| ETRACS 2xMonthly Pay |
| Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ETRACS 2xMonthly and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETRACS 2xMonthly and Credit Suisse
The main advantage of trading using opposite ETRACS 2xMonthly and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETRACS 2xMonthly 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.| ETRACS 2xMonthly vs. ETRACS 2xMonthly Pay | ETRACS 2xMonthly vs. ETRACS Monthly Pay | ETRACS 2xMonthly vs. ETRACS Monthly Pay | ETRACS 2xMonthly vs. ETRACS Monthly Pay |
| Credit Suisse vs. UBS AG London | Credit Suisse vs. ETRACS 2xMonthly Pay | Credit Suisse vs. UBS AG London |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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