Correlation Between Credit Suisse and Sadot

Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Sadot 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 Sadot 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 Sadot Group, you can compare the effects of market volatilities on Credit Suisse and Sadot 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 Sadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Sadot.

Diversification Opportunities for Credit Suisse and Sadot

0.15

Correlation Coefficient

Credit Suisse  Sadot

Average diversification

The 3 months correlation between Credit and Sadot is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Managed and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot Group 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 Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Credit Suisse i.e., Credit Suisse and Sadot go up and down completely randomly.

Pair Corralation between Credit Suisse and Sadot

Assuming the 90 days horizon Credit Suisse Managed is expected to generate 0.05 times more return on investment than Sadot. However, Credit Suisse Managed is 19.75 times less risky than Sadot. It trades about 0.03 of its potential returns per unit of risk. Sadot Group is currently generating about -0.02 per unit of risk. If you would invest  730.00  in Credit Suisse Managed on May 16, 2025 and sell it today you would earn a total of  6.00  from holding Credit Suisse Managed or generate 0.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Credit Suisse Managed  vs.  Sadot Group

Credit Suisse Managed

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Managed are ranked lower than 2 (%) 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.

Sadot Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Credit Suisse and Sadot

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

The idea behind Credit Suisse Managed and Sadot 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.