Correlation Between Credit Suisse and Swisscom

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

Diversification Opportunities for Credit Suisse and Swisscom

-0.31

Correlation Coefficient

Credit Suisse  Swisscom

Very good diversification

The 3 months correlation between Credit and Swisscom is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Swisscom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swisscom 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 Swisscom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swisscom AG has no effect on the direction of Credit Suisse i.e., Credit Suisse and Swisscom go up and down completely randomly.

Pair Corralation between Credit Suisse and Swisscom

Given the investment horizon of 90 days Credit Suisse X Links is expected to generate 1.31 times more return on investment than Swisscom. However, Credit Suisse is 1.31 times more volatile than Swisscom AG. It trades about 0.08 of its potential returns per unit of risk. Swisscom AG is currently generating about 0.07 per unit of risk. If you would invest  4,988  in Credit Suisse X Links on June 29, 2025 and sell it today you would earn a total of  254.00  from holding Credit Suisse X Links or generate 5.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Credit Suisse X Links  vs.  Swisscom AG

Credit Suisse X

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse X Links are ranked lower than 6 (%) 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.

Swisscom AG

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscom AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swisscom 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 Swisscom

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

The idea behind Credit Suisse X Links and Swisscom 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 Stocks Directory module to find actively traded stocks across global markets.