Correlation Between Credit Suisse and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Franklin Federal 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 Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Multialternative and Franklin Federal Limited Term, you can compare the effects of market volatilities on Credit Suisse and Franklin Federal 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 Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Franklin Federal.
Diversification Opportunities for Credit Suisse and Franklin Federal
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and Franklin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Franklin Federal Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Lim 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 Multialternative are associated (or correlated) with Franklin Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Federal Lim has no effect on the direction of Credit Suisse i.e., Credit Suisse and Franklin Federal go up and down completely randomly.
Pair Corralation between Credit Suisse and Franklin Federal
Assuming the 90 days horizon Credit Suisse Multialternative is expected to under-perform the Franklin Federal. In addition to that, Credit Suisse is 5.46 times more volatile than Franklin Federal Limited Term. It trades about -0.02 of its total potential returns per unit of risk. Franklin Federal Limited Term is currently generating about 0.38 per unit of volatility. If you would invest 1,019 in Franklin Federal Limited Term on June 8, 2025 and sell it today you would earn a total of 20.00 from holding Franklin Federal Limited Term or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Franklin Federal Limited Term
Performance |
| Timeline |
| Credit Suisse Multia |
| Franklin Federal Lim |
Credit Suisse and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Franklin Federal
The main advantage of trading using opposite Credit Suisse and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Franklin Federal 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 Franklin Federal will offset losses from the drop in Franklin Federal's long position.| Credit Suisse vs. Lebenthal Lisanti Small | Credit Suisse vs. Siit Small Cap | Credit Suisse vs. Vanguard Strategic Small Cap | Credit Suisse vs. Pace Smallmedium Value |
| Franklin Federal vs. Smallcap Fund Fka | Franklin Federal vs. Jhvit International Small | Franklin Federal vs. Siit Small Cap | Franklin Federal vs. Sp Smallcap 600 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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