Correlation Between REX VolMAXX and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both REX VolMAXX 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 REX VolMAXX and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REX VolMAXX Long and Credit Suisse, you can compare the effects of market volatilities on REX VolMAXX 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 REX VolMAXX with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of REX VolMAXX and Credit Suisse.
Diversification Opportunities for REX VolMAXX and Credit Suisse
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REX and Credit is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding REX VolMAXX Long and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse and REX VolMAXX 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 REX VolMAXX Long 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 REX VolMAXX i.e., REX VolMAXX and Credit Suisse go up and down completely randomly.
Pair Corralation between REX VolMAXX and Credit Suisse
If you would invest 1,490 in Credit Suisse on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Credit Suisse or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
REX VolMAXX Long vs. Credit Suisse
Performance |
| Timeline |
| REX VolMAXX Long |
| Credit Suisse |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
REX VolMAXX and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REX VolMAXX and Credit Suisse
The main advantage of trading using opposite REX VolMAXX and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REX VolMAXX 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.| REX VolMAXX vs. SPDR SP 500 | REX VolMAXX vs. GE Aerospace | REX VolMAXX vs. Merck Company | REX VolMAXX vs. Exxon Mobil Corp |
| Credit Suisse vs. Virtus InfraCap Preferred | Credit Suisse vs. Amplify High Income | Credit Suisse vs. SCOR PK | Credit Suisse vs. HUMANA INC |
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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