Correlation Between Credit Suisse and Lesico
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Lesico 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 Lesico into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse X Links and Lesico, you can compare the effects of market volatilities on Credit Suisse and Lesico 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 Lesico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Lesico.
Diversification Opportunities for Credit Suisse and Lesico
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Credit and Lesico is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse X Links and Lesico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesico 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 X Links are associated (or correlated) with Lesico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesico has no effect on the direction of Credit Suisse i.e., Credit Suisse and Lesico go up and down completely randomly.
Pair Corralation between Credit Suisse and Lesico
Given the investment horizon of 90 days Credit Suisse is expected to generate 8.39 times less return on investment than Lesico. But when comparing it to its historical volatility, Credit Suisse X Links is 3.32 times less risky than Lesico. It trades about 0.09 of its potential returns per unit of risk. Lesico is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 30,450 in Lesico on January 25, 2024 and sell it today you would earn a total of 2,760 from holding Lesico or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.27% |
| Values | Daily Returns |
Credit Suisse X Links vs. Lesico
Performance |
| Timeline |
| Credit Suisse X |
| Lesico |
Credit Suisse and Lesico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Lesico
The main advantage of trading using opposite Credit Suisse and Lesico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Lesico 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 Lesico will offset losses from the drop in Lesico's long position.| Credit Suisse vs. HUMANA INC | Credit Suisse vs. Aquagold International | Credit Suisse vs. Barloworld Ltd ADR | Credit Suisse vs. Morningstar Unconstrained Allocation |
| Lesico vs. Alony Hetz Properties | Lesico vs. Melisron | Lesico vs. Shufersal | Lesico vs. Israel Discount Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |