Correlation Between BCV Swiss and CSIF III
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By analyzing existing cross correlation between BCV Swiss Franc and CSIF III Eq, you can compare the effects of market volatilities on BCV Swiss and CSIF III 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 BCV Swiss with a short position of CSIF III. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCV Swiss and CSIF III.
Diversification Opportunities for BCV Swiss and CSIF III
Modest diversification
The 3 months correlation between BCV and CSIF is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BCV Swiss Franc and CSIF III Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF III Eq and BCV Swiss 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 BCV Swiss Franc are associated (or correlated) with CSIF III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSIF III Eq has no effect on the direction of BCV Swiss i.e., BCV Swiss and CSIF III go up and down completely randomly.
Pair Corralation between BCV Swiss and CSIF III
Assuming the 90 days trading horizon BCV Swiss is expected to generate 4.78 times less return on investment than CSIF III. But when comparing it to its historical volatility, BCV Swiss Franc is 5.04 times less risky than CSIF III. It trades about 0.1 of its potential returns per unit of risk. CSIF III Eq is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 123,781 in CSIF III Eq on December 11, 2024 and sell it today you would earn a total of 45,417 from holding CSIF III Eq or generate 36.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.96% |
| Values | Daily Returns |
BCV Swiss Franc vs. CSIF III Eq
Performance |
| Timeline |
| BCV Swiss Franc |
| CSIF III Eq |
BCV Swiss and CSIF III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCV Swiss and CSIF III
The main advantage of trading using opposite BCV Swiss and CSIF III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCV Swiss position performs unexpectedly, CSIF III 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 III will offset losses from the drop in CSIF III's long position.The idea behind BCV Swiss Franc and CSIF III Eq 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.| CSIF III vs. CSIF III Eq | CSIF III vs. CSIF III Equity | CSIF III vs. CSIF III Equity | CSIF III vs. CSIF III Equity |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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