Correlation Between Credit Suisse and Metrospaces

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

Diversification Opportunities for Credit Suisse and Metrospaces

0.29

Correlation Coefficient

Credit Suisse  Metrospaces

Modest diversification

The 3 months correlation between Credit and Metrospaces is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Metrospaces in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrospaces 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 Metrospaces. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrospaces has no effect on the direction of Credit Suisse i.e., Credit Suisse and Metrospaces go up and down completely randomly.

Pair Corralation between Credit Suisse and Metrospaces

Given the investment horizon of 90 days Credit Suisse is expected to generate 413.33 times less return on investment than Metrospaces. But when comparing it to its historical volatility, Credit Suisse X Links is 351.2 times less risky than Metrospaces. It trades about 0.28 of its potential returns per unit of risk. Metrospaces is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Metrospaces on May 3, 2025 and sell it today you would lose (0.01) from holding Metrospaces or give up 100.0% of portfolio value 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.  Metrospaces

Credit Suisse X

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse X Links are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Credit Suisse demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Metrospaces

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Metrospaces are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Metrospaces exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Credit Suisse and Metrospaces

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

The idea behind Credit Suisse X Links and Metrospaces 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.