Correlation Between SPDR Dow and CSIF I
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By analyzing existing cross correlation between SPDR Dow Jones and CSIF I Bond, you can compare the effects of market volatilities on SPDR Dow 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 SPDR Dow with a short position of CSIF I. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and CSIF I.
Diversification Opportunities for SPDR Dow and CSIF I
Very good diversification
The 3 months correlation between SPDR and CSIF is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones and CSIF I Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF I Bond and SPDR Dow 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 SPDR Dow Jones 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 Bond has no effect on the direction of SPDR Dow i.e., SPDR Dow and CSIF I go up and down completely randomly.
Pair Corralation between SPDR Dow and CSIF I
Assuming the 90 days trading horizon SPDR Dow Jones is expected to generate 4.33 times more return on investment than CSIF I. However, SPDR Dow is 4.33 times more volatile than CSIF I Bond. It trades about 0.05 of its potential returns per unit of risk. CSIF I Bond is currently generating about 0.17 per unit of risk. If you would invest 1,748 in SPDR Dow Jones on November 7, 2024 and sell it today you would earn a total of 14.00 from holding SPDR Dow Jones or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR Dow Jones vs. CSIF I Bond
Performance |
| Timeline |
| SPDR Dow Jones |
| CSIF I Bond |
SPDR Dow and CSIF I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and CSIF I
The main advantage of trading using opposite SPDR Dow and CSIF I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow 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.| SPDR Dow vs. UBSFund Solutions MSCI | SPDR Dow vs. Vanguard SP 500 | SPDR Dow vs. iShares VII PLC | SPDR Dow vs. iShares Core SP |
| CSIF I vs. SPDR Dow Jones | CSIF I vs. Baloise Holding AG | CSIF I vs. Autoneum Holding AG | CSIF I vs. SPDR FTSE UK |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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