Correlation Between Credit Suisse and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and ProShares Ultra 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 ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse and ProShares Ultra Telecommunications, you can compare the effects of market volatilities on Credit Suisse and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and ProShares Ultra.
Diversification Opportunities for Credit Suisse and ProShares Ultra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse and ProShares Ultra Telecommunicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Tele 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 are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Tele has no effect on the direction of Credit Suisse i.e., Credit Suisse and ProShares Ultra go up and down completely randomly.
Pair Corralation between Credit Suisse and ProShares Ultra
If you would invest (100.00) in Credit Suisse on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Credit Suisse or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Credit Suisse vs. ProShares Ultra Telecommunicat
Performance |
Timeline |
Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProShares Ultra Tele |
Credit Suisse and ProShares Ultra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Credit Suisse and ProShares Ultra
The main advantage of trading using opposite Credit Suisse and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.The idea behind Credit Suisse and ProShares Ultra Telecommunications 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.ProShares Ultra vs. ProShares Ultra Consumer | ProShares Ultra vs. ProShares Ultra Consumer | ProShares Ultra vs. ProShares Ultra Utilities | ProShares Ultra vs. ProShares Ultra Industrials |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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