Correlation Between CSIF III and UBS Property
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By analyzing existing cross correlation between CSIF III Eq and UBS Property, you can compare the effects of market volatilities on CSIF III and UBS Property 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 UBS Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF III and UBS Property.
Diversification Opportunities for CSIF III and UBS Property
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSIF and UBS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CSIF III Eq and UBS Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Property 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 UBS Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Property has no effect on the direction of CSIF III i.e., CSIF III and UBS Property go up and down completely randomly.
Pair Corralation between CSIF III and UBS Property
Assuming the 90 days trading horizon CSIF III is expected to generate 1.39 times less return on investment than UBS Property. But when comparing it to its historical volatility, CSIF III Eq is 1.36 times less risky than UBS Property. It trades about 0.08 of its potential returns per unit of risk. UBS Property is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,460 in UBS Property on September 21, 2024 and sell it today you would earn a total of 720.00 from holding UBS Property or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
CSIF III Eq vs. UBS Property
Performance |
| Timeline |
| CSIF III Eq |
| UBS Property |
CSIF III and UBS Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF III and UBS Property
The main advantage of trading using opposite CSIF III and UBS Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF III position performs unexpectedly, UBS Property 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 UBS Property will offset losses from the drop in UBS Property's long position.| CSIF III vs. CSIF III Eq | CSIF III vs. CSIF III Equity | CSIF III vs. CSIF III Equity | CSIF III vs. CSIF I Real |
| UBS Property vs. SPDR Dow Jones | UBS Property vs. Baloise Holding AG | UBS Property vs. SPDR FTSE UK | UBS Property vs. Banque Cantonale du |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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