Correlation Between IShares Corp and CSIF III
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By analyzing existing cross correlation between iShares Corp Bond and CSIF III Eq, you can compare the effects of market volatilities on IShares Corp 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 IShares Corp with a short position of CSIF III. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Corp and CSIF III.
Diversification Opportunities for IShares Corp and CSIF III
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and CSIF is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares Corp Bond 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 IShares Corp 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 iShares Corp Bond 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 IShares Corp i.e., IShares Corp and CSIF III go up and down completely randomly.
Pair Corralation between IShares Corp and CSIF III
Assuming the 90 days trading horizon IShares Corp is expected to generate 3.11 times less return on investment than CSIF III. But when comparing it to its historical volatility, iShares Corp Bond is 3.79 times less risky than CSIF III. It trades about 0.11 of its potential returns per unit of risk. CSIF III Eq is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 126,451 in CSIF III Eq on October 13, 2024 and sell it today you would earn a total of 43,231 from holding CSIF III Eq or generate 34.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.39% |
| Values | Daily Returns |
iShares Corp Bond vs. CSIF III Eq
Performance |
| Timeline |
| iShares Corp Bond |
| CSIF III Eq |
IShares Corp and CSIF III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Corp and CSIF III
The main advantage of trading using opposite IShares Corp and CSIF III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Corp 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.| IShares Corp vs. iShares Corp Bond | IShares Corp vs. iShares Emerging Asia | IShares Corp vs. iShares MSCI Global | IShares Corp vs. iShares VII PLC |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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