Correlation Between Credit Suisse and The Short-term

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

By analyzing existing cross correlation between Credit Suisse Floating and The Short Term Municipal, you can compare the effects of market volatilities on Credit Suisse and The Short-term 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 The Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and The Short-term.

Diversification Opportunities for Credit Suisse and The Short-term

0.68

Correlation Coefficient

Credit Suisse  The Short-term

Poor diversification

The 3 months correlation between Credit and The is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Floating and The Short Term Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Short-term 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 Floating are associated (or correlated) with The Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Short-term has no effect on the direction of Credit Suisse i.e., Credit Suisse and The Short-term go up and down completely randomly.

Pair Corralation between Credit Suisse and The Short-term

Assuming the 90 days horizon Credit Suisse Floating is expected to generate 2.37 times more return on investment than The Short-term. However, Credit Suisse is 2.37 times more volatile than The Short Term Municipal. It trades about 0.23 of its potential returns per unit of risk. The Short Term Municipal is currently generating about 0.3 per unit of risk. If you would invest  608.00  in Credit Suisse Floating on May 27, 2025 and sell it today you would earn a total of  14.00  from holding Credit Suisse Floating or generate 2.3% return on investment over 90 days.

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

Credit Suisse Floating  vs.  The Short Term Municipal

Credit Suisse Floating

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Floating are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. 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.

The Short-term

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Short Term Municipal are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, The Short-term 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 The Short-term

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

The idea behind Credit Suisse Floating and The Short Term Municipal 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 CEOs Directory module to screen CEOs from public companies around the world.