Correlation Between Credit Suisse and CFSB Bancorp

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

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

Diversification Opportunities for Credit Suisse and CFSB Bancorp

-0.11

Correlation Coefficient

Credit Suisse  CFSB Bancorp

Good diversification

The 3 months correlation between Credit and CFSB is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and CFSB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFSB Bancorp 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 X Links are associated (or correlated) with CFSB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFSB Bancorp has no effect on the direction of Credit Suisse i.e., Credit Suisse and CFSB Bancorp go up and down completely randomly.

Pair Corralation between Credit Suisse and CFSB Bancorp

Given the investment horizon of 90 days Credit Suisse X Links is expected to under-perform the CFSB Bancorp. In addition to that, Credit Suisse is 2.24 times more volatile than CFSB Bancorp. It trades about -0.03 of its total potential returns per unit of risk. CFSB Bancorp is currently generating about 0.08 per unit of volatility. If you would invest  1,380  in CFSB Bancorp on July 9, 2025 and sell it today you would earn a total of  32.00  from holding CFSB Bancorp or generate 2.32% return on investment over 90 days.

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

Credit Suisse X Links  vs.  CFSB Bancorp

Credit Suisse X

Risk-Adjusted Performance

Weakest

Over the last 90 days Credit Suisse X Links has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Credit Suisse is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

CFSB Bancorp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CFSB Bancorp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CFSB Bancorp 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 CFSB Bancorp

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

The idea behind Credit Suisse X Links and CFSB Bancorp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.