Correlation Between Credit Suisse and MFS High
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and MFS High 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 MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Asset and MFS High Yield, you can compare the effects of market volatilities on Credit Suisse and MFS High 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 MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and MFS High.
Diversification Opportunities for Credit Suisse and MFS High
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Credit and MFS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Asset and MFS High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Yield 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 Asset are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Yield has no effect on the direction of Credit Suisse i.e., Credit Suisse and MFS High go up and down completely randomly.
Pair Corralation between Credit Suisse and MFS High
Considering the 90-day investment horizon Credit Suisse Asset is expected to under-perform the MFS High. In addition to that, Credit Suisse is 1.4 times more volatile than MFS High Yield. It trades about -0.04 of its total potential returns per unit of risk. MFS High Yield is currently generating about 0.31 per unit of volatility. If you would invest 317.00 in MFS High Yield on July 20, 2025 and sell it today you would earn a total of 31.00 from holding MFS High Yield or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Asset vs. MFS High Yield
Performance |
| Timeline |
| Credit Suisse Asset |
| MFS High Yield |
Credit Suisse and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and MFS High
The main advantage of trading using opposite Credit Suisse and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, MFS High 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 MFS High will offset losses from the drop in MFS High's long position.| Credit Suisse vs. Eaton Vance Short | Credit Suisse vs. Blackstone Gso Long | Credit Suisse vs. Stone Harbor Emerging | Credit Suisse vs. Nuveen New York |
| MFS High vs. Saat E Market | MFS High vs. High Yield Strategy | MFS High vs. High Yield Strategy | MFS High vs. Alphacentric Global Innovations |
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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