Correlation Between Barclays PLC and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Barclays PLC 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 Barclays PLC and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays PLC ADR and Credit Suisse Group, you can compare the effects of market volatilities on Barclays PLC 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 Barclays PLC with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and Credit Suisse.
Diversification Opportunities for Barclays PLC and Credit Suisse
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and Credit is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC ADR and Credit Suisse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group and Barclays PLC 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 Barclays PLC ADR 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 Group has no effect on the direction of Barclays PLC i.e., Barclays PLC and Credit Suisse go up and down completely randomly.
Pair Corralation between Barclays PLC and Credit Suisse
Considering the 90-day investment horizon Barclays PLC ADR is expected to generate 0.91 times more return on investment than Credit Suisse. However, Barclays PLC ADR is 1.1 times less risky than Credit Suisse. It trades about 0.05 of its potential returns per unit of risk. Credit Suisse Group is currently generating about -0.02 per unit of risk. If you would invest 736.00 in Barclays PLC ADR on January 19, 2024 and sell it today you would earn a total of 188.00 from holding Barclays PLC ADR or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 14.86% |
| Values | Daily Returns |
Barclays PLC ADR vs. Credit Suisse Group
Performance |
| Timeline |
| Barclays PLC ADR |
| Credit Suisse Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays PLC and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays PLC and Credit Suisse
The main advantage of trading using opposite Barclays PLC and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays PLC 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.| Barclays PLC vs. Banco Bilbao Viscaya | Barclays PLC vs. Banco Santander SA | Barclays PLC vs. UBS Group AG | Barclays PLC vs. HSBC Holdings PLC |
| Credit Suisse vs. Barclays PLC ADR | Credit Suisse vs. HSBC Holdings PLC | Credit Suisse vs. ING Group NV | Credit Suisse vs. Citigroup |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |