Correlation Between Credit Suisse and ProShares Long

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

Diversification Opportunities for Credit Suisse and ProShares Long

-0.17

Correlation Coefficient

Credit Suisse  ProShares Long

Good diversification

The 3 months correlation between Credit and ProShares is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and ProShares Long OnlineShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Long Onlin 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 ProShares Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Long Onlin has no effect on the direction of Credit Suisse i.e., Credit Suisse and ProShares Long go up and down completely randomly.

Pair Corralation between Credit Suisse and ProShares Long

Given the investment horizon of 90 days Credit Suisse X Links is expected to under-perform the ProShares Long. But the etf apears to be less risky and, when comparing its historical volatility, Credit Suisse X Links is 1.08 times less risky than ProShares Long. The etf trades about -0.03 of its potential returns per unit of risk. The ProShares Long OnlineShort is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  5,157  in ProShares Long OnlineShort on July 6, 2025 and sell it today you would earn a total of  966.70  from holding ProShares Long OnlineShort or generate 18.75% 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.  ProShares Long OnlineShort

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.

ProShares Long Onlin

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Long OnlineShort are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, ProShares Long showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Credit Suisse and ProShares Long

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

The idea behind Credit Suisse X Links and ProShares Long OnlineShort 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.