Correlation Between SPDR Dow and CSIF III
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By analyzing existing cross correlation between SPDR Dow Jones and CSIF III Equity, you can compare the effects of market volatilities on SPDR Dow 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 SPDR Dow with a short position of CSIF III. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and CSIF III.
Diversification Opportunities for SPDR Dow and CSIF III
Modest diversification
The 3 months correlation between SPDR and CSIF is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones and CSIF III Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF III Equity 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 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 Equity has no effect on the direction of SPDR Dow i.e., SPDR Dow and CSIF III go up and down completely randomly.
Pair Corralation between SPDR Dow and CSIF III
Assuming the 90 days trading horizon SPDR Dow is expected to generate 5.42 times less return on investment than CSIF III. But when comparing it to its historical volatility, SPDR Dow Jones is 1.01 times less risky than CSIF III. It trades about 0.01 of its potential returns per unit of risk. CSIF III Equity is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 181,897 in CSIF III Equity on October 13, 2024 and sell it today you would earn a total of 28,977 from holding CSIF III Equity or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPDR Dow Jones vs. CSIF III Equity
Performance |
| Timeline |
| SPDR Dow Jones |
| CSIF III Equity |
SPDR Dow and CSIF III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and CSIF III
The main advantage of trading using opposite SPDR Dow and CSIF III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow 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.| SPDR Dow vs. SPDR MSCI Europe | SPDR Dow vs. SPDR SP Utilities | SPDR Dow vs. SPDR MSCI Europe | SPDR Dow vs. SPDR MSCI EM |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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