Correlation Between Dow Jones and CSIF III
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and CSIF III Eq, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of CSIF III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CSIF III.
Diversification Opportunities for Dow Jones and CSIF III
Modest diversification
The 3 months correlation between Dow and CSIF is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 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 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 Dow Jones i.e., Dow Jones and CSIF III go up and down completely randomly.
Pair Corralation between Dow Jones and CSIF III
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.7 times less return on investment than CSIF III. But when comparing it to its historical volatility, Dow Jones Industrial is 1.21 times less risky than CSIF III. It trades about 0.08 of its potential returns per unit of risk. CSIF III Eq is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 145,901 in CSIF III Eq on October 29, 2024 and sell it today you would earn a total of 38,530 from holding CSIF III Eq or generate 26.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
Dow Jones Industrial vs. CSIF III Eq
Performance |
| Timeline |
Dow Jones and CSIF III Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CSIF III Eq
Pair trading matchups for CSIF III
Pair Trading with Dow Jones and CSIF III
The main advantage of trading using opposite Dow Jones and CSIF III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
| CSIF III vs. Procimmo Real Estate | CSIF III vs. SPDR Dow Jones | CSIF III vs. Baloise Holding AG | CSIF III vs. Autoneum 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |