Correlation Between Credit Suisse and Draganfly

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

Diversification Opportunities for Credit Suisse and Draganfly

0.73

Correlation Coefficient

Credit Suisse  Draganfly

Poor diversification

The 3 months correlation between Credit and Draganfly is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Draganfly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Draganfly 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 Draganfly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Draganfly has no effect on the direction of Credit Suisse i.e., Credit Suisse and Draganfly go up and down completely randomly.

Pair Corralation between Credit Suisse and Draganfly

Given the investment horizon of 90 days Credit Suisse is expected to generate 12.08 times less return on investment than Draganfly. But when comparing it to its historical volatility, Credit Suisse X Links is 12.62 times less risky than Draganfly. It trades about 0.2 of its potential returns per unit of risk. Draganfly is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  188.00  in Draganfly on May 6, 2025 and sell it today you would earn a total of  316.00  from holding Draganfly or generate 168.09% return on investment over 90 days.

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

Credit Suisse X Links  vs.  Draganfly

Credit Suisse X

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse X Links are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Credit Suisse may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Draganfly

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Draganfly are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Draganfly displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Credit Suisse and Draganfly

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

The idea behind Credit Suisse X Links and Draganfly 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.