Correlation Between CSIF I and 2 RABOBANK

Can any of the company-specific risk be diversified away by investing in both CSIF I and 2 RABOBANK 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 2 RABOBANK 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 2 RABOBANK 19, you can compare the effects of market volatilities on CSIF I and 2 RABOBANK 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 2 RABOBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF I and 2 RABOBANK.

Diversification Opportunities for CSIF I and 2 RABOBANK

0.0

Correlation Coefficient

CSIF I  2 RABOBANK

Pay attention - limited upside

The 3 months correlation between CSIF and RBK12 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSIF I Bond and 2 RABOBANK 19 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2 RABOBANK 19 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 2 RABOBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2 RABOBANK 19 has no effect on the direction of CSIF I i.e., CSIF I and 2 RABOBANK go up and down completely randomly.

Pair Corralation between CSIF I and 2 RABOBANK

If you would invest  66,872  in CSIF I Bond on December 21, 2024 and sell it today you would earn a total of  123.00  from holding CSIF I Bond or generate 0.18% 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.  2 RABOBANK 19

CSIF I Bond

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CSIF I Bond are ranked lower than 1 (%) 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 new stock price disturbance, may contribute to short-term losses for the investors.

2 RABOBANK 19

Risk-Adjusted Performance

Very Weak

Over the last 90 days 2 RABOBANK 19 has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 2 RABOBANK 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 2 RABOBANK

The main advantage of trading using opposite CSIF I and 2 RABOBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF I position performs unexpectedly, 2 RABOBANK 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 2 RABOBANK will offset losses from the drop in 2 RABOBANK's long position.

The idea behind CSIF I Bond and 2 RABOBANK 19 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.