Correlation Between Credit Suisse and Income Fund
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Income Fund 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 Income Fund 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 Income Fund Institutional, you can compare the effects of market volatilities on Credit Suisse and Income Fund 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 Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Income Fund.
Diversification Opportunities for Credit Suisse and Income Fund
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and Income is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and Income Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund Institutional 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 Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund Institutional has no effect on the direction of Credit Suisse i.e., Credit Suisse and Income Fund go up and down completely randomly.
Pair Corralation between Credit Suisse and Income Fund
Assuming the 90 days horizon Credit Suisse Floating is expected to generate 0.58 times more return on investment than Income Fund. However, Credit Suisse Floating is 1.71 times less risky than Income Fund. It trades about 0.12 of its potential returns per unit of risk. Income Fund Institutional is currently generating about 0.06 per unit of risk. If you would invest 589.00 in Credit Suisse Floating on April 3, 2025 and sell it today you would earn a total of 34.00 from holding Credit Suisse Floating or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Credit Suisse Floating vs. Income Fund Institutional
Performance |
| Timeline |
| Credit Suisse Floating |
| Income Fund Institutional |
Credit Suisse and Income Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Income Fund
The main advantage of trading using opposite Credit Suisse and Income Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Income Fund 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 Income Fund will offset losses from the drop in Income Fund's long position.| Credit Suisse vs. Jennison Natural Resources | Credit Suisse vs. Salient Mlp Energy | Credit Suisse vs. Firsthand Alternative Energy | Credit Suisse vs. Calvert Global Energy |
| Income Fund vs. Artisan High Income | Income Fund vs. Rbc Ultra Short Fixed | Income Fund vs. Multisector Bond Sma | Income Fund vs. Siit High Yield |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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