Hedge Fund Relative Value Strategy Assessment

James is an investment analyst at a hedge fund that specializes in relative value strategies. The fund manager is currently evaluating two financial instruments: a corporate bond and its corresponding credit default swap (CDS). James has been asked to identify which strategy could effectively capture the price discrepancy between these two instruments, while keeping market risk to a minimum.

Considering the principles of relative value trading, which strategy would be most appropriate for James to recommend?