Correlation Between ZKB PERPETUAL and CSIF III

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

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

Diversification Opportunities for ZKB PERPETUAL and CSIF III

0.0

Correlation Coefficient

ZKB PERPETUAL  CSIF III

Pay attention - limited upside

The 3 months correlation between ZKB and CSIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZKB PERPETUAL VAR 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 ZKB PERPETUAL 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 ZKB PERPETUAL VAR 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 ZKB PERPETUAL i.e., ZKB PERPETUAL and CSIF III go up and down completely randomly.

Pair Corralation between ZKB PERPETUAL and CSIF III

If you would invest  181,914  in CSIF III Equity on October 15, 2024 and sell it today you would earn a total of  28,960  from holding CSIF III Equity or generate 15.92% return on investment over 90 days.

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

ZKB PERPETUAL VAR  vs.  CSIF III Equity

ZKB PERPETUAL VAR

Risk-Adjusted Performance

0 of 100

Very Weak

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

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CSIF III Equity are ranked lower than 5 (%) 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 ZKB PERPETUAL and CSIF III

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

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.