Correlation Between Rivernorth Opportunities and CSP

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

By analyzing existing cross correlation between Rivernorth Opportunities and CSP Inc, you can compare the effects of market volatilities on Rivernorth Opportunities and CSP 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 Rivernorth Opportunities with a short position of CSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivernorth Opportunities and CSP.

Diversification Opportunities for Rivernorth Opportunities and CSP

0.24

Correlation Coefficient

Rivernorth Opportunities  CSP

Modest diversification

The 3 months correlation between Rivernorth and CSP is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Rivernorth Opportunities and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc and Rivernorth Opportunities 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 Rivernorth Opportunities are associated (or correlated) with CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of Rivernorth Opportunities i.e., Rivernorth Opportunities and CSP go up and down completely randomly.

Pair Corralation between Rivernorth Opportunities and CSP

Considering the 90-day investment horizon Rivernorth Opportunities is expected to generate 69.62 times less return on investment than CSP. But when comparing it to its historical volatility, Rivernorth Opportunities is 5.46 times less risky than CSP. It trades about 0.01 of its potential returns per unit of risk. CSP Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,088  in CSP Inc on September 9, 2025 and sell it today you would earn a total of  283.00  from holding CSP Inc or generate 26.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Rivernorth Opportunities  vs.  CSP Inc

Rivernorth Opportunities

Risk-Adjusted Performance

Weakest

Over the last 90 days Rivernorth Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable forward indicators, Rivernorth Opportunities is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

CSP Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CSP Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, CSP demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rivernorth Opportunities and CSP

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

The idea behind Rivernorth Opportunities and CSP Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..