Correlation Between CSIF I and 4625 WORLD

Can any of the company-specific risk be diversified away by investing in both CSIF I and 4625 WORLD 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 CSIF I and 4625 WORLD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSIF I Bond and 4625 WORLD BANK, you can compare the effects of market volatilities on CSIF I and 4625 WORLD 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 CSIF I with a short position of 4625 WORLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF I and 4625 WORLD.

Diversification Opportunities for CSIF I and 4625 WORLD

0.0

Correlation Coefficient

CSIF I  4625 WORLD

Pay attention - limited upside

The 3 months correlation between CSIF and 4625 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSIF I Bond and 4625 WORLD BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4625 WORLD BANK and CSIF I 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 CSIF I Bond are associated (or correlated) with 4625 WORLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4625 WORLD BANK has no effect on the direction of CSIF I i.e., CSIF I and 4625 WORLD go up and down completely randomly.

Pair Corralation between CSIF I and 4625 WORLD

If you would invest  66,918  in CSIF I Bond on October 27, 2024 and sell it today you would earn a total of  484.00  from holding CSIF I Bond or generate 0.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CSIF I Bond  vs.  4625 WORLD BANK

CSIF I Bond

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CSIF I Bond are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, CSIF I is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

4625 WORLD BANK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 4625 WORLD BANK has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong fundamental indicators, 4625 WORLD is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CSIF I and 4625 WORLD

The main advantage of trading using opposite CSIF I and 4625 WORLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF I position performs unexpectedly, 4625 WORLD 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 4625 WORLD will offset losses from the drop in 4625 WORLD's long position.

The idea behind CSIF I Bond and 4625 WORLD BANK 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..