Correlation Between CSIF I and CSIF III
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By analyzing existing cross correlation between CSIF I Bond and CSIF III Eq, you can compare the effects of market volatilities on CSIF I and CSIF III 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 CSIF I with a short position of CSIF III. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF I and CSIF III.
Diversification Opportunities for CSIF I and CSIF III
Weak diversification
The 3 months correlation between CSIF and CSIF is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CSIF I Bond and CSIF III Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF III Eq and CSIF I 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 CSIF I Bond are associated (or correlated) with CSIF III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSIF III Eq has no effect on the direction of CSIF I i.e., CSIF I and CSIF III go up and down completely randomly.
Pair Corralation between CSIF I and CSIF III
Assuming the 90 days trading horizon CSIF I Bond is expected to generate 0.34 times more return on investment than CSIF III. However, CSIF I Bond is 2.96 times less risky than CSIF III. It trades about -0.18 of its potential returns per unit of risk. CSIF III Eq is currently generating about -0.17 per unit of risk. If you would invest 68,180 in CSIF I Bond on December 11, 2024 and sell it today you would lose (710.00) from holding CSIF I Bond or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSIF I Bond vs. CSIF III Eq
Performance |
| Timeline |
| CSIF I Bond |
| CSIF III Eq |
CSIF I and CSIF III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF I and CSIF III
The main advantage of trading using opposite CSIF I and CSIF III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF I position performs unexpectedly, CSIF III 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 CSIF III will offset losses from the drop in CSIF III's long position.| CSIF I vs. Procimmo Real Estate | CSIF I vs. Baloise Holding AG | CSIF I vs. Banque Cantonale du | CSIF I vs. Invesco EQQQ NASDAQ 100 |
| CSIF III vs. CSIF III Eq | CSIF III vs. CSIF III Equity | CSIF III vs. CSIF III Equity | CSIF III vs. CSIF III Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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