Correlation Between Credit Suisse and Hartford International

Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Hartford International 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 Hartford International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Credit Suisse Managed and Hartford International Equity, you can compare the effects of market volatilities on Credit Suisse and Hartford International 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 Hartford International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Hartford International.

Diversification Opportunities for Credit Suisse and Hartford International

0.86

Correlation Coefficient

Credit Suisse  Hartford International

Very poor diversification

The 3 months correlation between Credit and HARTFORD is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Managed and Hartford International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford International 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 Managed are associated (or correlated) with Hartford International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford International has no effect on the direction of Credit Suisse i.e., Credit Suisse and Hartford International go up and down completely randomly.

Pair Corralation between Credit Suisse and Hartford International

Assuming the 90 days horizon Credit Suisse is expected to generate 2.1 times less return on investment than Hartford International. But when comparing it to its historical volatility, Credit Suisse Managed is 2.06 times less risky than Hartford International. It trades about 0.15 of its potential returns per unit of risk. Hartford International Equity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,456  in Hartford International Equity on July 22, 2025 and sell it today you would earn a total of  110.00  from holding Hartford International Equity or generate 7.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Credit Suisse Managed  vs.  Hartford International Equity

Credit Suisse Managed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Managed are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hartford International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford International Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Hartford International may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Credit Suisse and Hartford International

The main advantage of trading using opposite Credit Suisse and Hartford International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Hartford International 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 Hartford International will offset losses from the drop in Hartford International's long position.

The idea behind Credit Suisse Managed and Hartford International Equity 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.