Correlation Between Credit Suisse and Forbo Holding

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

Diversification Opportunities for Credit Suisse and Forbo Holding

0.24

Correlation Coefficient

Credit Suisse  Forbo Holding

Modest diversification

The 3 months correlation between Credit and Forbo is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Forbo Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forbo Holding AG 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 Forbo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forbo Holding AG has no effect on the direction of Credit Suisse i.e., Credit Suisse and Forbo Holding go up and down completely randomly.

Pair Corralation between Credit Suisse and Forbo Holding

Given the investment horizon of 90 days Credit Suisse X Links is expected to under-perform the Forbo Holding. But the etf apears to be less risky and, when comparing its historical volatility, Credit Suisse X Links is 1.18 times less risky than Forbo Holding. The etf trades about -0.03 of its potential returns per unit of risk. The Forbo Holding AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  78,600  in Forbo Holding AG on September 10, 2025 and sell it today you would earn a total of  1,700  from holding Forbo Holding AG or generate 2.16% return on investment over 90 days.

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

Credit Suisse X Links  vs.  Forbo Holding AG

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 latest stock price confusion, may contribute to short-horizon losses for the traders.

Forbo Holding AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Forbo Holding AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Forbo Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Credit Suisse and Forbo Holding

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

The idea behind Credit Suisse X Links and Forbo Holding AG 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.