Correlation Between Credit Suisse and ZKB Platinum
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and ZKB Platinum 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 ZKB Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse X Links and ZKB Platinum ETF, you can compare the effects of market volatilities on Credit Suisse and ZKB Platinum 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 ZKB Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and ZKB Platinum.
Diversification Opportunities for Credit Suisse and ZKB Platinum
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Credit and ZKB is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and ZKB Platinum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Platinum ETF 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 X Links are associated (or correlated) with ZKB Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Platinum ETF has no effect on the direction of Credit Suisse i.e., Credit Suisse and ZKB Platinum go up and down completely randomly.
Pair Corralation between Credit Suisse and ZKB Platinum
Given the investment horizon of 90 days Credit Suisse is expected to generate 3.32 times less return on investment than ZKB Platinum. But when comparing it to its historical volatility, Credit Suisse X Links is 2.34 times less risky than ZKB Platinum. It trades about 0.12 of its potential returns per unit of risk. ZKB Platinum ETF is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 26,285 in ZKB Platinum ETF on May 27, 2025 and sell it today you would earn a total of 6,100 from holding ZKB Platinum ETF or generate 23.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Credit Suisse X Links vs. ZKB Platinum ETF
Performance |
| Timeline |
| Credit Suisse X |
| ZKB Platinum ETF |
Credit Suisse and ZKB Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and ZKB Platinum
The main advantage of trading using opposite Credit Suisse and ZKB Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, ZKB Platinum 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 ZKB Platinum will offset losses from the drop in ZKB Platinum's long position.| Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Global X Russell | Credit Suisse vs. Cornerstone Strategic Value |
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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