Correlation Between Barclays Capital and Credit Suisse

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy53.64%
ValuesDaily Returns

Barclays Capital  vs.  Credit Suisse X-Links

 Performance 
       Timeline  
Barclays Capital 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Barclays Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking indicators, Barclays Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Credit Suisse X-Links 

Risk-Adjusted Performance

22 of 100

 
Low
 
High
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.

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.
The idea behind Barclays Capital and Credit Suisse X Links 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.
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