Correlation Between Credit Suisse and United States
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and United States 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 Credit Suisse and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse X Links and United States Brent, you can compare the effects of market volatilities on Credit Suisse and United States 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 Credit Suisse with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and United States.
Diversification Opportunities for Credit Suisse and United States
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Credit and United is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and United States Brent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Brent and Credit Suisse 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 Credit Suisse X Links are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Brent has no effect on the direction of Credit Suisse i.e., Credit Suisse and United States go up and down completely randomly.
Pair Corralation between Credit Suisse and United States
Given the investment horizon of 90 days Credit Suisse X Links is expected to generate 0.85 times more return on investment than United States. However, Credit Suisse X Links is 1.18 times less risky than United States. It trades about 0.01 of its potential returns per unit of risk. United States Brent is currently generating about -0.05 per unit of risk. If you would invest 6,358 in Credit Suisse X Links on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Credit Suisse X Links or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse X Links vs. United States Brent
Performance |
| Timeline |
| Credit Suisse X |
| United States Brent |
Credit Suisse and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and United States
The main advantage of trading using opposite Credit Suisse and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Global X Russell | Credit Suisse vs. Cornerstone Strategic Value |
| United States vs. Invesco DB Oil | United States vs. United States 12 | United States vs. United States Gasoline | United States vs. United States Oil |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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