Correlation Between Tortoise North and Credit Suisse

Can any of the company-specific risk be diversified away by investing in both Tortoise North 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 Tortoise North and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tortoise North American and Credit Suisse, you can compare the effects of market volatilities on Tortoise North 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 Tortoise North with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tortoise North and Credit Suisse.

Diversification Opportunities for Tortoise North and Credit Suisse

-0.37

Correlation Coefficient

Tortoise North  Credit Suisse

Very good diversification

The 3 months correlation between Tortoise and Credit is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise North American and Credit Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse and Tortoise North 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 Tortoise North American 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 Tortoise North i.e., Tortoise North and Credit Suisse go up and down completely randomly.

Pair Corralation between Tortoise North and Credit Suisse

If you would invest  3,140  in Tortoise North American on September 14, 2024 and sell it today you would earn a total of  332.00  from holding Tortoise North American or generate 10.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	3.13%
Values	Daily Returns

Tortoise North American  vs.  Credit Suisse

Tortoise North American

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise North American are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Tortoise North may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Credit Suisse

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Credit Suisse has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Credit Suisse is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Tortoise North and Credit Suisse

The main advantage of trading using opposite Tortoise North and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tortoise North 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.

The idea behind Tortoise North American and Credit Suisse 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.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.