Correlation Between Nasdaq 100 and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 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 Nasdaq 100 and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Credit Suisse Managed, you can compare the effects of market volatilities on Nasdaq 100 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 Nasdaq 100 with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Credit Suisse.
Diversification Opportunities for Nasdaq 100 and Credit Suisse
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Credit is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Credit Suisse Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Managed and Nasdaq 100 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 Nasdaq 100 Index 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 Managed has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Credit Suisse go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Credit Suisse
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 1.5 times more return on investment than Credit Suisse. However, Nasdaq 100 is 1.5 times more volatile than Credit Suisse Managed. It trades about 0.1 of its potential returns per unit of risk. Credit Suisse Managed is currently generating about -0.07 per unit of risk. If you would invest 3,059 in Nasdaq 100 Index Fund on August 29, 2024 and sell it today you would earn a total of 2,156 from holding Nasdaq 100 Index Fund or generate 70.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Credit Suisse Managed
Performance |
| Timeline |
| Nasdaq 100 Index |
| Credit Suisse Managed |
Nasdaq 100 and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Credit Suisse
The main advantage of trading using opposite Nasdaq 100 and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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.| Nasdaq 100 vs. Balanced Fund Retail | Nasdaq 100 vs. Rbc Global Equity | Nasdaq 100 vs. Calamos Global Equity | Nasdaq 100 vs. Touchstone International Equity |
| Credit Suisse vs. Versatile Bond Portfolio | Credit Suisse vs. Nasdaq 100 Index Fund | Credit Suisse vs. Artisan Thematic Fund | Credit Suisse vs. T Rowe Price |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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