Correlation Between SNB KASSAZINSSA and CSIF III

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

By analyzing existing cross correlation between SNB KASSAZINSSA 10J and CSIF III Equity, you can compare the effects of market volatilities on SNB KASSAZINSSA 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 SNB KASSAZINSSA with a short position of CSIF III. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNB KASSAZINSSA and CSIF III.

Diversification Opportunities for SNB KASSAZINSSA and CSIF III

0.0

Correlation Coefficient

SNB KASSAZINSSA  CSIF III

Pay attention - limited upside

The 3 months correlation between SNB and CSIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SNB KASSAZINSSA 10J and CSIF III Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF III Equity and SNB KASSAZINSSA 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 SNB KASSAZINSSA 10J 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 Equity has no effect on the direction of SNB KASSAZINSSA i.e., SNB KASSAZINSSA and CSIF III go up and down completely randomly.

Pair Corralation between SNB KASSAZINSSA and CSIF III

If you would invest (100.00) in SNB KASSAZINSSA 10J on September 27, 2024 and sell it today you would earn a total of  100.00  from holding SNB KASSAZINSSA 10J or generate -100.0% return on investment over 90 days.

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

SNB KASSAZINSSA 10J  vs.  CSIF III Equity

SNB KASSAZINSSA 10J

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SNB KASSAZINSSA 10J has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, SNB KASSAZINSSA is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

CSIF III Equity

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CSIF III Equity are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, CSIF III is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SNB KASSAZINSSA and CSIF III

The main advantage of trading using opposite SNB KASSAZINSSA and CSIF III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNB KASSAZINSSA 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.

The idea behind SNB KASSAZINSSA 10J and CSIF III Equity 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.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.