Correlation Between SPDR Dow and CSIF III
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By analyzing existing cross correlation between SPDR Dow Jones and CSIF III Eq, 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
Significant diversification
The 3 months correlation between SPDR and CSIF is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones 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 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 Eq 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 Jones is expected to under-perform the CSIF III. In addition to that, SPDR Dow is 1.58 times more volatile than CSIF III Eq. It trades about -0.03 of its total potential returns per unit of risk. CSIF III Eq is currently generating about 0.32 per unit of volatility. If you would invest 169,581 in CSIF III Eq on September 20, 2024 and sell it today you would earn a total of 4,064 from holding CSIF III Eq or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR Dow Jones vs. CSIF III Eq
Performance |
| Timeline |
| SPDR Dow Jones |
| CSIF III Eq |
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. Baloise Holding AG | SPDR Dow vs. 21Shares Polkadot ETP | SPDR Dow vs. UBS ETF MSCI | SPDR Dow vs. BB Biotech AG |
| CSIF III vs. SPDR Dow Jones | CSIF III vs. Baloise Holding AG | CSIF III vs. Banque Cantonale du | CSIF III vs. 21Shares Polkadot ETP |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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