Correlation Between Western Asset and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Inflation and Credit Suisse Multialternative, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Credit Suisse.
Diversification Opportunities for Western Asset and Credit Suisse
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WESTERN and Credit is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia and Western Asset 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 Western Asset Inflation 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 Multia has no effect on the direction of Western Asset i.e., Western Asset and Credit Suisse go up and down completely randomly.
Pair Corralation between Western Asset and Credit Suisse
Assuming the 90 days horizon Western Asset is expected to generate 2.05 times less return on investment than Credit Suisse. In addition to that, Western Asset is 1.33 times more volatile than Credit Suisse Multialternative. It trades about 0.15 of its total potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.41 per unit of volatility. If you would invest 811.00 in Credit Suisse Multialternative on October 29, 2024 and sell it today you would earn a total of 11.00 from holding Credit Suisse Multialternative or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Inflation vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Western Asset Inflation |
| Credit Suisse Multia |
Western Asset and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Credit Suisse
The main advantage of trading using opposite Western Asset and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Versatile Bond Portfolio | Western Asset vs. T Rowe Price | Western Asset vs. Bbh Intermediate Municipal | Western Asset vs. California Bond Fund |
| Credit Suisse vs. Moderate Balanced Allocation | Credit Suisse vs. College Retirement Equities | Credit Suisse vs. Voya Target Retirement | Credit Suisse vs. Jp Morgan Smartretirement |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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