Correlation Between Franklin Government and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Franklin Government 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 Government 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 Securities and Credit Suisse Multialternative, you can compare the effects of market volatilities on Franklin Government 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 Government with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Government and Credit Suisse.
Diversification Opportunities for Franklin Government and Credit Suisse
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Credit is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Securities and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia and Franklin Government 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 Securities 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 Multia has no effect on the direction of Franklin Government i.e., Franklin Government and Credit Suisse go up and down completely randomly.
Pair Corralation between Franklin Government and Credit Suisse
Assuming the 90 days horizon Franklin Government Securities is expected to generate 0.51 times more return on investment than Credit Suisse. However, Franklin Government Securities is 1.95 times less risky than Credit Suisse. It trades about -0.09 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about -0.11 per unit of risk. If you would invest 508.00 in Franklin Government Securities on April 29, 2025 and sell it today you would lose (2.00) from holding Franklin Government Securities or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Securities vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Franklin Government |
| Credit Suisse Multia |
Franklin Government and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Government and Credit Suisse
The main advantage of trading using opposite Franklin Government and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Government 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 Government vs. Franklin Mutual Beacon | Franklin Government vs. Templeton Developing Markets | Franklin Government vs. Franklin Mutual Global | Franklin Government vs. Franklin Mutual Global |
| Credit Suisse vs. Hartford Healthcare Hls | Credit Suisse vs. Deutsche Health And | Credit Suisse vs. Health Care Ultrasector | Credit Suisse vs. Prudential Health Sciences |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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