Correlation Between Eco Wave and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Eco Wave 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 Eco Wave and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eco Wave Power and Credit Suisse Group, you can compare the effects of market volatilities on Eco Wave 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 Eco Wave with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eco Wave and Credit Suisse.
Diversification Opportunities for Eco Wave and Credit Suisse
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eco and Credit is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eco Wave Power and Credit Suisse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group and Eco Wave 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 Eco Wave Power 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 Group has no effect on the direction of Eco Wave i.e., Eco Wave and Credit Suisse go up and down completely randomly.
Pair Corralation between Eco Wave and Credit Suisse
Given the investment horizon of 90 days Eco Wave Power is expected to generate 1.85 times more return on investment than Credit Suisse. However, Eco Wave is 1.85 times more volatile than Credit Suisse Group. It trades about 0.06 of its potential returns per unit of risk. Credit Suisse Group is currently generating about -0.15 per unit of risk. If you would invest 382.00 in Eco Wave Power on September 6, 2024 and sell it today you would earn a total of 715.00 from holding Eco Wave Power or generate 187.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 21.85% |
Values | Daily Returns |
Eco Wave Power vs. Credit Suisse Group
Performance |
Timeline |
Eco Wave Power |
Credit Suisse Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eco Wave and Credit Suisse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eco Wave and Credit Suisse
The main advantage of trading using opposite Eco Wave and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eco Wave 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.Eco Wave vs. Altius Renewable Royalties | Eco Wave vs. Alternus Energy Group | Eco Wave vs. Triad Pro Innovators | Eco Wave vs. American Security Resources |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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