Correlation Between Dow Jones and CSIF I
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By analyzing existing cross correlation between Dow Jones Industrial and CSIF I Real, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of CSIF I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CSIF I.
Diversification Opportunities for Dow Jones and CSIF I
Very weak diversification
The 3 months correlation between Dow and CSIF is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CSIF I Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF I Real and Dow Jones 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 Dow Jones Industrial 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 Real has no effect on the direction of Dow Jones i.e., Dow Jones and CSIF I go up and down completely randomly.
Pair Corralation between Dow Jones and CSIF I
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.28 times less return on investment than CSIF I. In addition to that, Dow Jones is 1.22 times more volatile than CSIF I Real. It trades about 0.08 of its total potential returns per unit of risk. CSIF I Real is currently generating about 0.12 per unit of volatility. If you would invest 170,224 in CSIF I Real on September 25, 2024 and sell it today you would earn a total of 31,405 from holding CSIF I Real or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. CSIF I Real
Performance |
| Timeline |
Dow Jones and CSIF I Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CSIF I Real
Pair trading matchups for CSIF I
Pair Trading with Dow Jones and CSIF I
The main advantage of trading using opposite Dow Jones and CSIF I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. Lion One Metals | Dow Jones vs. Blue Moon Metals | Dow Jones vs. Xunlei Ltd Adr |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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