Correlation Between CSIF III and CSIF I
Specify exactly 2 symbols:
By analyzing existing cross correlation between CSIF III Eq and CSIF I Bond, you can compare the effects of market volatilities on CSIF III and CSIF I 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 CSIF I. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF III and CSIF I.
Diversification Opportunities for CSIF III and CSIF I
Poor diversification
The 3 months correlation between CSIF and CSIF is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CSIF III Eq and CSIF I Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF I Bond 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 Eq are associated (or correlated) with CSIF I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSIF I Bond has no effect on the direction of CSIF III i.e., CSIF III and CSIF I go up and down completely randomly.
Pair Corralation between CSIF III and CSIF I
Assuming the 90 days trading horizon CSIF III is expected to generate 1.47 times less return on investment than CSIF I. In addition to that, CSIF III is 2.65 times more volatile than CSIF I Bond. It trades about 0.04 of its total potential returns per unit of risk. CSIF I Bond is currently generating about 0.16 per unit of volatility. If you would invest 65,730 in CSIF I Bond on September 23, 2024 and sell it today you would earn a total of 1,172 from holding CSIF I Bond or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSIF III Eq vs. CSIF I Bond
Performance |
| Timeline |
| CSIF III Eq |
| CSIF I Bond |
CSIF III and CSIF I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF III and CSIF I
The main advantage of trading using opposite CSIF III and CSIF I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF III position performs unexpectedly, CSIF I 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 I will offset losses from the drop in CSIF I's long position.| CSIF III vs. UBS Property | CSIF III vs. Procimmo Real Estate | CSIF III vs. Baloise Holding AG | CSIF III vs. Banque Cantonale du |
| CSIF I vs. CSIF III Eq | CSIF I vs. UBS Property | CSIF I vs. Procimmo Real Estate | CSIF I 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets |