Correlation Between Abrdn Physical and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Abrdn Physical 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 Abrdn Physical and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Physical Gold and Credit Suisse X Links, you can compare the effects of market volatilities on Abrdn Physical 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 Abrdn Physical with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and Credit Suisse.
Diversification Opportunities for Abrdn Physical and Credit Suisse
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abrdn and Credit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Gold and Credit Suisse X Links in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse X and Abrdn Physical 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 abrdn Physical Gold 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 X has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and Credit Suisse go up and down completely randomly.
Pair Corralation between Abrdn Physical and Credit Suisse
Given the investment horizon of 90 days abrdn Physical Gold is expected to generate 1.51 times more return on investment than Credit Suisse. However, Abrdn Physical is 1.51 times more volatile than Credit Suisse X Links. It trades about 0.11 of its potential returns per unit of risk. Credit Suisse X Links is currently generating about 0.11 per unit of risk. If you would invest 1,749 in abrdn Physical Gold on November 19, 2024 and sell it today you would earn a total of 1,005 from holding abrdn Physical Gold or generate 57.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
abrdn Physical Gold vs. Credit Suisse X Links
Performance |
| Timeline |
| abrdn Physical Gold |
| Credit Suisse X |
Abrdn Physical and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Physical and Credit Suisse
The main advantage of trading using opposite Abrdn Physical and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Physical 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.| Abrdn Physical vs. abrdn Physical Silver | Abrdn Physical vs. GraniteShares Gold Trust | Abrdn Physical vs. SPDR Gold MiniShares | Abrdn Physical vs. abrdn Physical Platinum |
| Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Global X Alternative | Credit Suisse vs. Global X Russell |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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