Correlation Between Barclays Capital and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Credit Suisse 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 Barclays Capital and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Credit Suisse X Links, you can compare the effects of market volatilities on Barclays Capital and Credit Suisse 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 Barclays Capital with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Credit Suisse.
Diversification Opportunities for Barclays Capital and Credit Suisse
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Credit is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Credit Suisse X-Links in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse X-Links and Barclays Capital 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 Barclays Capital are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse X-Links has no effect on the direction of Barclays Capital i.e., Barclays Capital and Credit Suisse go up and down completely randomly.
Pair Corralation between Barclays Capital and Credit Suisse
Considering the 90-day investment horizon Barclays Capital is expected to under-perform the Credit Suisse. In addition to that, Barclays Capital is 1.69 times more volatile than Credit Suisse X Links. It trades about -0.04 of its total potential returns per unit of risk. Credit Suisse X Links is currently generating about 0.04 per unit of volatility. If you would invest 6,103 in Credit Suisse X Links on December 30, 2023 and sell it today you would earn a total of 1,612 from holding Credit Suisse X Links or generate 26.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 53.64% |
Values | Daily Returns |
Barclays Capital vs. Credit Suisse X-Links
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Credit Suisse X-Links |
Barclays Capital and Credit Suisse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and Credit Suisse
The main advantage of trading using opposite Barclays Capital and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. Vanguard Mid Cap Index | Barclays Capital vs. Vanguard Small Cap Index | Barclays Capital vs. Microsoft |
Credit Suisse vs. Aptus Defined Risk | Credit Suisse vs. Discipline Fund ETF | Credit Suisse vs. IShares Core Aggressive | Credit Suisse vs. IShares Core Conservative |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |