Correlation Between 1 KIWIBANK and CSIF I

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Can any of the company-specific risk be diversified away by investing in both 1 KIWIBANK and CSIF I at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 1 KIWIBANK and CSIF I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1 KIWIBANK 20 and CSIF I Bond, you can compare the effects of market volatilities on 1 KIWIBANK 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 1 KIWIBANK with a short position of CSIF I. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 KIWIBANK and CSIF I.

Diversification Opportunities for 1 KIWIBANK and CSIF I

KIW13CSIFDiversified AwayKIW13CSIFDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between KIW13 and CSIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 1 KIWIBANK 20 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 1 KIWIBANK 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 1 KIWIBANK 20 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 1 KIWIBANK i.e., 1 KIWIBANK and CSIF I go up and down completely randomly.

Pair Corralation between 1 KIWIBANK and CSIF I

If you would invest  64,331  in CSIF I Bond on September 25, 2024 and sell it today you would earn a total of  2,349  from holding CSIF I Bond or generate 3.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

1 KIWIBANK 20  vs.  CSIF I Bond

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -1.5-1.0-0.50.00.51.0
JavaScript chart by amCharts 3.21.15KIW13 0P0000A2DS
       Timeline  
1 KIWIBANK 20 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days 1 KIWIBANK 20 has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 1 KIWIBANK is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
CSIF I Bond 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CSIF I Bond has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, CSIF I is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec660665670

1 KIWIBANK and CSIF I Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 12345
JavaScript chart by amCharts 3.21.15KIW13 0P0000A2DS
       Returns  

Pair Trading with 1 KIWIBANK and CSIF I

The main advantage of trading using opposite 1 KIWIBANK and CSIF I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 KIWIBANK 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.
The idea behind 1 KIWIBANK 20 and CSIF I Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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