Correlation Between Credit Suisse and Ab Global
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Ab Global 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 Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Floating and Ab Global Risk, you can compare the effects of market volatilities on Credit Suisse and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Ab Global.
Diversification Opportunities for Credit Suisse and Ab Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Credit and CABIX is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk 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 Floating are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Credit Suisse i.e., Credit Suisse and Ab Global go up and down completely randomly.
Pair Corralation between Credit Suisse and Ab Global
Assuming the 90 days horizon Credit Suisse is expected to generate 3.64 times less return on investment than Ab Global. But when comparing it to its historical volatility, Credit Suisse Floating is 2.77 times less risky than Ab Global. It trades about 0.17 of its potential returns per unit of risk. Ab Global Risk is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,574 in Ab Global Risk on May 30, 2025 and sell it today you would earn a total of 75.00 from holding Ab Global Risk or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Floating vs. Ab Global Risk
Performance |
| Timeline |
| Credit Suisse Floating |
| Ab Global Risk |
Credit Suisse and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Ab Global
The main advantage of trading using opposite Credit Suisse and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Credit Suisse vs. City National Rochdale | Credit Suisse vs. Fidelity Capital Income | Credit Suisse vs. Six Circles Credit | Credit Suisse vs. Janus High Yield Fund |
| Ab Global vs. Artisan Global Opportunities | Ab Global vs. Morgan Stanley Global | Ab Global vs. The Hartford Global | Ab Global vs. Templeton Global Balanced |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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