Correlation Between SPDR SP and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both SPDR SP 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 SPDR SP and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Credit Suisse, you can compare the effects of market volatilities on SPDR SP 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 SPDR SP with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Credit Suisse.
Diversification Opportunities for SPDR SP and Credit Suisse
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse and SPDR SP 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 SPDR SP 500 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 has no effect on the direction of SPDR SP i.e., SPDR SP and Credit Suisse go up and down completely randomly.
Pair Corralation between SPDR SP and Credit Suisse
If you would invest 40,025 in SPDR SP 500 on January 20, 2024 and sell it today you would earn a total of 9,927 from holding SPDR SP 500 or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Credit Suisse
Performance |
| Timeline |
| SPDR SP 500 |
| Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SP and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Credit Suisse
The main advantage of trading using opposite SPDR SP and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP 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.| SPDR SP vs. Dimensional Targeted Value | SPDR SP vs. Dimensional World ex | SPDR SP vs. Dimensional Small Cap |
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 CEOs Directory module to screen CEOs from public companies around the world.
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