Correlation Between East West and Credit Suisse

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both East West 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 East West and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East West Bancorp and Credit Suisse Group, you can compare the effects of market volatilities on East West 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 East West with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of East West and Credit Suisse.

Diversification Opportunities for East West and Credit Suisse

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between East and Credit is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding East West Bancorp 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 East West 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 East West Bancorp 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 East West i.e., East West and Credit Suisse go up and down completely randomly.

Pair Corralation between East West and Credit Suisse

If you would invest  7,213  in East West Bancorp on December 30, 2023 and sell it today you would earn a total of  698.00  from holding East West Bancorp or generate 9.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

East West Bancorp  vs.  Credit Suisse Group

 Performance 
       Timeline  
East West Bancorp 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in East West Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental drivers, East West may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Credit Suisse Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Credit Suisse Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Credit Suisse is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

East West and Credit Suisse Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with East West and Credit Suisse

The main advantage of trading using opposite East West and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East West 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.
The idea behind East West Bancorp and Credit Suisse Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories