Correlation Between International Business and Credit Suisse

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

By analyzing existing cross correlation between International Business Machines and Credit Suisse Strategic, you can compare the effects of market volatilities on International Business and Credit Suisse 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 International Business with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Credit Suisse.

Diversification Opportunities for International Business and Credit Suisse

-0.31

Correlation Coefficient

International Business  Credit Suisse

Very good diversification

The 3 months correlation between International and Credit is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Credit Suisse Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Strategic and International Business 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 International Business Machines are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Strategic has no effect on the direction of International Business i.e., International Business and Credit Suisse go up and down completely randomly.

Pair Corralation between International Business and Credit Suisse

If you would invest  24,150  in International Business Machines on July 2, 2025 and sell it today you would earn a total of  4,281  from holding International Business Machines or generate 17.73% return on investment over 90 days.

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

International Business Machine  vs.  Credit Suisse Strategic

International Business

Risk-Adjusted Performance

Weakest

Over the last 90 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, International Business is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Credit Suisse Strategic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Strategic are ranked lower than 8 (%) 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.

Pair Trading with International Business and Credit Suisse

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

The idea behind International Business Machines and Credit Suisse Strategic 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.