Correlation Between CSIF III and BCV Swiss
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By analyzing existing cross correlation between CSIF III Equity and BCV Swiss Equity, you can compare the effects of market volatilities on CSIF III and BCV Swiss 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 BCV Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF III and BCV Swiss.
Diversification Opportunities for CSIF III and BCV Swiss
Excellent diversification
The 3 months correlation between CSIF and BCV is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CSIF III Equity and BCV Swiss Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCV Swiss Equity 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 BCV Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCV Swiss Equity has no effect on the direction of CSIF III i.e., CSIF III and BCV Swiss go up and down completely randomly.
Pair Corralation between CSIF III and BCV Swiss
Assuming the 90 days trading horizon CSIF III Equity is expected to under-perform the BCV Swiss. In addition to that, CSIF III is 1.69 times more volatile than BCV Swiss Equity. It trades about -0.37 of its total potential returns per unit of risk. BCV Swiss Equity is currently generating about -0.25 per unit of volatility. If you would invest 10,920 in BCV Swiss Equity on September 25, 2024 and sell it today you would lose (245.00) from holding BCV Swiss Equity or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSIF III Equity vs. BCV Swiss Equity
Performance |
| Timeline |
| CSIF III Equity |
| BCV Swiss Equity |
CSIF III and BCV Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF III and BCV Swiss
The main advantage of trading using opposite CSIF III and BCV Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF III position performs unexpectedly, BCV Swiss 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 BCV Swiss will offset losses from the drop in BCV Swiss' long position.The idea behind CSIF III Equity and BCV Swiss Equity 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.| BCV Swiss vs. CSIF III Eq | BCV Swiss vs. UBS Property | BCV Swiss vs. Procimmo Real Estate | BCV Swiss 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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