Correlation Between Franklin and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Franklin 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 Franklin and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and Credit Suisse Floating, you can compare the effects of market volatilities on Franklin 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 Franklin with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Credit Suisse.
Diversification Opportunities for Franklin and Credit Suisse
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating and Franklin 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 Franklin Government Money 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 Floating has no effect on the direction of Franklin i.e., Franklin and Credit Suisse go up and down completely randomly.
Pair Corralation between Franklin and Credit Suisse
Assuming the 90 days horizon Franklin is expected to generate 1.68 times less return on investment than Credit Suisse. But when comparing it to its historical volatility, Franklin Government Money is 1.44 times less risky than Credit Suisse. It trades about 0.13 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 541.00 in Credit Suisse Floating on June 5, 2025 and sell it today you would earn a total of 81.00 from holding Credit Suisse Floating or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Credit Suisse Floating
Performance |
| Timeline |
| Franklin Government Money |
| Credit Suisse Floating |
Franklin and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Credit Suisse
The main advantage of trading using opposite Franklin and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin 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.| Franklin vs. Vanguard Money Market | Franklin vs. Putnam Money Market | Franklin vs. Cref Money Market | Franklin vs. Ab Government Exchange |
| Credit Suisse vs. Investec Emerging Markets | Credit Suisse vs. Ashmore Emerging Markets | Credit Suisse vs. Nuveen Equity Longshort | Credit Suisse vs. Western Asset Short |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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