Correlation Between Wells Fargo and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Wells Fargo 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 Wells Fargo and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Short Term and Credit Suisse Floating, you can compare the effects of market volatilities on Wells Fargo 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 Wells Fargo with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Credit Suisse.
Diversification Opportunities for Wells Fargo and Credit Suisse
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wells and Credit is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Short Term 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 Wells Fargo 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 Wells Fargo Short Term 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 Wells Fargo i.e., Wells Fargo and Credit Suisse go up and down completely randomly.
Pair Corralation between Wells Fargo and Credit Suisse
If you would invest 614.00 in Credit Suisse Floating on April 9, 2025 and sell it today you would earn a total of 11.00 from holding Credit Suisse Floating or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.5% |
| Values | Daily Returns |
Wells Fargo Short Term vs. Credit Suisse Floating
Performance |
| Timeline |
| Wells Fargo Short |
Risk-Adjusted Performance
Strong
Weak | Strong |
| Credit Suisse Floating |
Wells Fargo and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Credit Suisse
The main advantage of trading using opposite Wells Fargo and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo 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.| Wells Fargo vs. Aew Real Estate | Wells Fargo vs. Global Real Estate | Wells Fargo vs. Commonwealth Real Estate | Wells Fargo vs. Fidelity Real Estate |
| Credit Suisse vs. Harbor Diversified International | Credit Suisse vs. Aqr Diversified Arbitrage | Credit Suisse vs. Mainstay Conservative Allocation | Credit Suisse vs. Fidelity Advisor Diversified |
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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