Correlation Between Meritage and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Meritage 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 Meritage and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meritage and Credit Suisse Multialternative, you can compare the effects of market volatilities on Meritage 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 Meritage with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meritage and Credit Suisse.
Diversification Opportunities for Meritage and Credit Suisse
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meritage and Credit is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Meritage 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 Meritage 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 Meritage 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 Meritage i.e., Meritage and Credit Suisse go up and down completely randomly.
Pair Corralation between Meritage and Credit Suisse
Considering the 90-day investment horizon Meritage is expected to generate 7.02 times more return on investment than Credit Suisse. However, Meritage is 7.02 times more volatile than Credit Suisse Multialternative. It trades about 0.08 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about -0.02 per unit of risk. If you would invest 6,242 in Meritage on April 16, 2025 and sell it today you would earn a total of 703.00 from holding Meritage or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Meritage vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Meritage |
| Credit Suisse Multia |
Meritage and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meritage and Credit Suisse
The main advantage of trading using opposite Meritage and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meritage 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.| Meritage vs. TRI Pointe Homes | Meritage vs. MI Homes | Meritage vs. Beazer Homes USA | Meritage vs. Century Communities |
| Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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