Correlation Between Credit Suisse and Touchstone International

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

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

Diversification Opportunities for Credit Suisse and Touchstone International

-0.55

Correlation Coefficient

Credit Suisse  Touchstone International

Excellent diversification

The 3 months correlation between Credit and Touchstone is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone 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 Multialternative are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Credit Suisse i.e., Credit Suisse and Touchstone International go up and down completely randomly.

Pair Corralation between Credit Suisse and Touchstone International

Assuming the 90 days horizon Credit Suisse Multialternative is expected to under-perform the Touchstone International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Credit Suisse Multialternative is 1.67 times less risky than Touchstone International. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Touchstone International Equity is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,654  in Touchstone International Equity on May 16, 2025 and sell it today you would earn a total of  186.00  from holding Touchstone International Equity or generate 11.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Credit Suisse Multialternative  vs.  Touchstone International Equit

Credit Suisse Multia

Risk-Adjusted Performance

Weakest

Over the last 90 days Credit Suisse Multialternative 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.

Touchstone International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone International Equity are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Touchstone International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Credit Suisse and Touchstone International

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

The idea behind Credit Suisse Multialternative and Touchstone 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.