Correlation Between UBS Group and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both UBS Group 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 UBS Group and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Group AG and Credit Suisse Group, you can compare the effects of market volatilities on UBS Group 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 UBS Group with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Group and Credit Suisse.
Diversification Opportunities for UBS Group and Credit Suisse
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS Group AG and Credit Suisse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group and UBS Group 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 UBS Group AG 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 Group has no effect on the direction of UBS Group i.e., UBS Group and Credit Suisse go up and down completely randomly.
Pair Corralation between UBS Group and Credit Suisse
If you would invest (100.00) in Credit Suisse Group on November 25, 2024 and sell it today you would earn a total of 100.00 from holding Credit Suisse Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
UBS Group AG vs. Credit Suisse Group
Performance |
Timeline |
UBS Group AG |
Credit Suisse Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
UBS Group and Credit Suisse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Group and Credit Suisse
The main advantage of trading using opposite UBS Group and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Group 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.UBS Group vs. Citigroup | ||
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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