Correlation Between CSIF III and Zurich Invest
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By analyzing existing cross correlation between CSIF III Equity and Zurich Invest II, you can compare the effects of market volatilities on CSIF III and Zurich Invest 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 III with a short position of Zurich Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF III and Zurich Invest.
Diversification Opportunities for CSIF III and Zurich Invest
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSIF and Zurich is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CSIF III Equity and Zurich Invest II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Invest II and CSIF III 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 III Equity are associated (or correlated) with Zurich Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Invest II has no effect on the direction of CSIF III i.e., CSIF III and Zurich Invest go up and down completely randomly.
Pair Corralation between CSIF III and Zurich Invest
Assuming the 90 days trading horizon CSIF III Equity is expected to under-perform the Zurich Invest. In addition to that, CSIF III is 4.94 times more volatile than Zurich Invest II. It trades about -0.37 of its total potential returns per unit of risk. Zurich Invest II is currently generating about -0.11 per unit of volatility. If you would invest 875.00 in Zurich Invest II on September 25, 2024 and sell it today you would lose (3.00) from holding Zurich Invest II or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSIF III Equity vs. Zurich Invest II
Performance |
| Timeline |
| CSIF III Equity |
| Zurich Invest II |
CSIF III and Zurich Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF III and Zurich Invest
The main advantage of trading using opposite CSIF III and Zurich Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF III position performs unexpectedly, Zurich Invest 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 Zurich Invest will offset losses from the drop in Zurich Invest's long position.The idea behind CSIF III Equity and Zurich Invest II 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.| Zurich Invest vs. CSIF III Eq | Zurich Invest vs. UBS Property | Zurich Invest vs. Procimmo Real Estate | Zurich Invest vs. Baloise Holding AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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