Correlation Between CSIF III and LG Clean
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By analyzing existing cross correlation between CSIF III Eq and LG Clean Water, you can compare the effects of market volatilities on CSIF III and LG Clean 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 LG Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF III and LG Clean.
Diversification Opportunities for CSIF III and LG Clean
Very weak diversification
The 3 months correlation between CSIF and GLUG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CSIF III Eq and LG Clean Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Clean Water 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 LG Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Clean Water has no effect on the direction of CSIF III i.e., CSIF III and LG Clean go up and down completely randomly.
Pair Corralation between CSIF III and LG Clean
Assuming the 90 days trading horizon CSIF III Eq is expected to generate 0.71 times more return on investment than LG Clean. However, CSIF III Eq is 1.42 times less risky than LG Clean. It trades about 0.09 of its potential returns per unit of risk. LG Clean Water is currently generating about 0.03 per unit of risk. If you would invest 126,451 in CSIF III Eq on October 13, 2024 and sell it today you would earn a total of 43,231 from holding CSIF III Eq or generate 34.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CSIF III Eq vs. LG Clean Water
Performance |
| Timeline |
| CSIF III Eq |
| LG Clean Water |
CSIF III and LG Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF III and LG Clean
The main advantage of trading using opposite CSIF III and LG Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF III position performs unexpectedly, LG Clean 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 LG Clean will offset losses from the drop in LG Clean's long position.| CSIF III vs. Procimmo Real Estate | CSIF III vs. SPDR Dow Jones | CSIF III vs. Baloise Holding AG | CSIF III vs. Autoneum Holding AG |
| LG Clean vs. Vanguard FTSE Emerging | LG Clean vs. UBS ETF MSCI | LG Clean vs. VanEck Solana ETN | LG Clean vs. iShares Corp Bond |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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