Correlation Between Credit Suisse and Hsbc Funds

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

Diversification Opportunities for Credit Suisse and Hsbc Funds

0.0

Correlation Coefficient

Credit Suisse  Hsbc Funds

Pay attention - limited upside

The 3 months correlation between Credit and Hsbc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Managed and Hsbc Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsbc Funds 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 Hsbc Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsbc Funds has no effect on the direction of Credit Suisse i.e., Credit Suisse and Hsbc Funds go up and down completely randomly.

Pair Corralation between Credit Suisse and Hsbc Funds

If you would invest (100.00) in Hsbc Funds on May 3, 2025 and sell it today you would earn a total of  100.00  from holding Hsbc Funds or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Credit Suisse Managed  vs.  Hsbc Funds

Credit Suisse Managed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Credit Suisse Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hsbc Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hsbc Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hsbc Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Credit Suisse and Hsbc Funds

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

The idea behind Credit Suisse Managed and Hsbc Funds 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.