Correlation Between Credit Suisse and Matrix

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

Diversification Opportunities for Credit Suisse and Matrix

0.09

Correlation Coefficient

Credit Suisse  Matrix

Significant diversification

The 3 months correlation between Credit and Matrix is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Matrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix 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 Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix has no effect on the direction of Credit Suisse i.e., Credit Suisse and Matrix go up and down completely randomly.

Pair Corralation between Credit Suisse and Matrix

Given the investment horizon of 90 days Credit Suisse is expected to generate 12.12 times less return on investment than Matrix. But when comparing it to its historical volatility, Credit Suisse X Links is 1.34 times less risky than Matrix. It trades about 0.01 of its potential returns per unit of risk. Matrix is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  642,694  in Matrix on July 2, 2025 and sell it today you would earn a total of  484,806  from holding Matrix or generate 75.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	78.6%
Values	Daily Returns

Credit Suisse X Links  vs.  Matrix

Credit Suisse X

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse X Links are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Matrix

Risk-Adjusted Performance

Weakest

Over the last 90 days Matrix has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Credit Suisse and Matrix

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

The idea behind Credit Suisse X Links and Matrix 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.