Correlation Between Credit Suisse and Fidelity Advisor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Credit Suisse and Fidelity Advisor 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 Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Floating and Fidelity Advisor Floating, you can compare the effects of market volatilities on Credit Suisse and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Fidelity Advisor.

Diversification Opportunities for Credit Suisse and Fidelity Advisor

0.99
  Correlation Coefficient

No risk reduction

The 3 months correlation between Credit and Fidelity is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT SUISSE FLOATING and FIDELITY ADVISOR FLOATING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Floating 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 Floating are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Floating has no effect on the direction of Credit Suisse i.e., Credit Suisse and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Credit Suisse and Fidelity Advisor

Assuming the 90 days horizon Credit Suisse is expected to generate 1.03 times less return on investment than Fidelity Advisor. In addition to that, Credit Suisse is 1.24 times more volatile than Fidelity Advisor Floating. It trades about 0.15 of its total potential returns per unit of risk. Fidelity Advisor Floating is currently generating about 0.2 per unit of volatility. If you would invest  925.00  in Fidelity Advisor Floating on December 29, 2023 and sell it today you would earn a total of  6.00  from holding Fidelity Advisor Floating or generate 0.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

CREDIT SUISSE FLOATING  vs.  FIDELITY ADVISOR FLOATING

 Performance 
       Timeline  
Credit Suisse Floating 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Floating are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fidelity Advisor Floating 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Floating are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credit Suisse and Fidelity Advisor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Credit Suisse and Fidelity Advisor

The main advantage of trading using opposite Credit Suisse and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.
The idea behind Credit Suisse Floating and Fidelity Advisor Floating 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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities